The remains of the Francis Scott Key Bridge on March 26, 2024 in Baltimore
Michael A. McCoy | The Washington Post | Getty Images
The collapse of a Baltimore bridge on Tuesday prompted automakers to evaluate operations after the busiest auto port in the United States was closed. Many do not expect major disruptions yet.
In a dramatic scene, a cargo ship collided with the Francis Scott Key Bridge in the early hours of Tuesday morning, causing it to collapse into the water almost immediately. Six people working on the bridge are believed to have died on Wednesday, after rescuers failed to find them.
The Port of Baltimore, the 11th largest port in the United States and the busiest for cars and light trucks, is closed until further notice. Logistics companies immediately began rushing to make rearrangements to other East Coast ports to move their imports and exports.
Mercedes Benz Baltimore was one of the German company's four distribution centers in the United States, but other ports of entry such as Brunswick, Georgia, would help ease import pressures, U.S. CEO Dimitris Psilakis told CNBC on Tuesday.
“It is too early to see the effects, the situation is still evolving and we will do everything we can to make sure we find ways to supply the market with vehicles, but it is still too early to judge,” said Silakis.
Volkswagen Group of America, a subsidiary of Germany VolkswagenIt said it does not expect an impact on ship operations, since its facility is located on the coastal side of the bridge, but it may experience trucking delays due to diverted traffic flows in the area.
“Last year, we received, processed and shipped nearly 100,000 vehicles through Baltimore to U.S. dealers across the Volkswagen, Audi, Lamborghini and Bentley brands located in the Northeast and Mid-Atlantic United States,” the company said in a statement.
The Swedish Volvo Group said it does not expect a major impact, but is checking its production facilities in the United States.
American companies General Motors And strongholdand Japan Toyota, April And Mitsubishi All said they were assessing the situation and would likely have to shift operations, but they did not expect major disruptions.
“Although Baltimore is not a major port for our North American operations, there will be some impact, primarily on automotive exports. At this time, we do not anticipate a significant disruption, but we are closely evaluating the situation to determine the long-term impact,” she said. Toyota: “And countermeasures.”
The Port of Baltimore handled 847,158 cars and light trucks last year, according to the Maryland Governor's Office.
Diversion of a variety of cargo to other ports – such as those in New York, New Jersey, Norfolk, Georgia and South Carolina – now appears likely, increasing journey times.
The event sent another shock to the global shipping sector, while fluctuations due to attacks on ships passing through the Red Sea towards the Suez Canal continue.
Christian Roelofs, CEO of logistics platform Container xChange, said the Port of Baltimore was a “critical gateway for specialty cargo and bulk handling, serving as a key link in many supply chains.”
“Delays in the movement of goods may lead to stock shortages, affecting companies that rely on just-in-time deliveries, such as the automobile industry that requires assemblies coming from different parts of the world,” Roelofs added.
– CNBC's Lori Ann LaRocco contributed to this article