By Martina Kao    Photo：CANVA

The Port of Baltimore, Maryland, USA is a very important port on the East Coast of the United States. It can be said to be the heart of the East Coast of the United States. This port generates nearly 3.3 billion U.S. dollars in personal income, 2.6 billion U.S. dollars in commercial income, and more than 395 million U.S. dollars every year. of taxes. In 2023, it handled 52.3 million tons of international cargo worth $80.8 billion. There are many important supply chains nearby. Almost all cars in the eastern United States are exported through here, and coal is also exported here. However, due to the Baltimore Bridge being hit by a Maersk cargo ship, causing the bridge to collapse, the port has now suspended operations. How much impact will this have on the global supply chain? Let’s analyze it now:

1.Coal supply chain
Because the coal mining area is located in North Carolina just below the Baltimore Port, there are many coal mining factories scattered around here, making the Baltimore Port one of the most important export ports for coal in the United States. Therefore, energy prices will be closed due to this, and it will be unable to export. The situation was greatly affected. According to data from the U.S. Department of Transportation Bureau of Statistics, the United States exported more than 13.2 million tons of coal in 2022. Fuel oil, natural gas and other fossil fuel products also flow in and out of the port. Moreover, most of the coal from this seaport is shipped to India, so India should be more obviously affected than other countries in the world.

2.Automotive supply chain
Almost all cars in the United States are exported from the Baltimore Port. In 2022, more than 750,000 cars were exported through here; in 2023, cars were the most important import and export commodity, with nearly 850,000 cars and small trucks entering and leaving through the port. , more than any other port in the United States. Car brands that will be affected now include Nissan, Toyota, General Motors, Audi, Mazda, Subaru, and Mercedes-Benz. Major automakers have begun moving products elsewhere after the bridge collapse, which could slightly stretch supply chains.

3.Machinery supply chain
In 2023, the Port of Baltimore handled 52.3 million tons of foreign cargo worth $80 billion. U.S. Transportation Secretary Pete Buttigieg said at a White House press conference that the Port of Baltimore is "important for the import and export of automobiles and agricultural equipment." The occurrence of this accident made it difficult for the trapped ships to enter and exit the port, and parts had to be transferred to other ports, causing container transportation to be affected. If global supply chains are already strained, the Baltimore Bridge collapse will have an even greater impact. The longer the bridge takes to repair, the greater the impact on global supply chains.

4.Others
Goods imported and exported from the Port of Baltimore include soybeans, pharmaceuticals, metals, textiles, animal feed and even newsprint. In 2022, many daily necessities will be shipped into the United States through the Port of Baltimore, including 106,000 tons of furniture, 738,000 tons of newsprinted materials, 36,000 tons of alcoholic beverages, and 83,000 tons of meat and seafood. In 2022, plastic and rubber imports will exceed 221,000 tons. Exporters who choose to do so may face increased trucking and rail freight rates if they have sufficient volumes to divert to other ports. and could lead to higher bunker fuel prices at alternative ports, depending on when the Port of Baltimore resumes operations.

To sum up, there are about 140,000 job opportunities related to port activities, and port closures have directly affected the livelihoods of about 8,000 people. First, companies should strengthen supply chain risk management and formulate emergency plans to reduce the impact of similar events.

Second, companies should avoid over-reliance on a single supplier or transportation route to increase supply chain resilience. Finally, governments and enterprises of various countries should strengthen international cooperation to jointly respond to global supply chain challenges. In addition, we also call on freighter companies to strengthen their management of industrial safety accidents and make reports to explain to the outside world.

Otherwise, super-large public security accidents like this will not only pose a global crisis to the global supply chain, but also It casts a long and far-reaching shadow on the global economy.

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