By Cadys Wang    Photo：CANVA

A cargo ship flying the Singapore flag, the "Dali,” departed from Baltimore, Maryland, USA, at 0:44 am Eastern Time on the 26th. Due to recent unrest in the Red Sea, the Dali was scheduled to detour around the Cape of Good Hope in South Africa and arrive in Sri Lanka 27 days later.

However, shortly after setting sail, the Dali collided with the Key Bridge for unknown reasons, attracting significant global supply chain and international attention.

Unlike other U.S. ports, the Port of Baltimore is the largest carport in the United States and the largest 'roll-on/roll-off' unloading port on the East Coast, where cars can directly load or unload from cargo ships, making it the most crucial import car receiving port on the East Coast. Last year, for example, the Port of Baltimore handled a record 847,158 cars and light trucks, more than any other U.S. port, making it the most important port for the automotive industry in the United States.

According to official data, the Port of Baltimore, ranked ninth in the United States, is not only a critical receiving port for imported cars but also exports significant goods, including fossil fuels, especially coal. According to data from the U.S. Bureau of Transportation Statistics, the United States exported over 13.2 million tons of coal in 2022. Fuel, natural gas, and other fossil fuel products also pass through the port.

Despite the challenges brought by the closure of the Key Bridge, some large car manufacturers such as BMW reported that their port operations were almost unaffected.

General Motors also quickly formulated an emergency plan, redirecting their car shipments to other ports, thereby reducing any major impact. Likewise, Toyota admitted that their car export operations might be slightly disrupted, but they believe the situation is manageable and not particularly worrisome.

These actions highlight the adaptability of supply chain participants when facing unexpected obstacles, ensuring that an interruption to important transportation infrastructure like the Key Bridge does not significantly hinder the flow of goods through the Port of Baltimore.

Oren Klachkin, an economist at Nationwide Financial, pointed out that a single accident could "disrupt the logistics industry on the East Coast," as nearly 35,000 cars pass over the bridge every day. If this critical link is lost, trucks will have to detour, inevitably leading to delays in cargo transportation.

This impact will be particularly significant for hazardous materials transport trucks that must avoid major roads with dense populations. In fact, Amazon has a warehouse and distribution center in the Port of Baltimore, which is an important commodity distribution center for the Washington area. The closure of the port would certainly have a direct impact on the people of the region.

The Key Bridge is an important transportation link in Baltimore, Maryland. It spans the Patapsco River, connecting the city with the surrounding areas. While the Key Bridge is not usually the focus of global supply chain discussions, interruptions or closures of major transportation infrastructure like bridges can generate ripple effects, affecting local, regional, and even global supply chains.

In addition to time delays, detours or transporting goods to other ports will also increase transportation costs. It is expected that shipping and railway transportation costs on the East Coast and in Europe will increase significantly. Industry insiders have pointed out that shipping to Europe has reached levels during the pandemic, and shipping to Asia has doubled. This increase is not only due to the bridge’s collapse but also because the Red Sea crisis has forced ships to abandon the Suez Canal and take a longer route around the Cape of Good Hope in Africa.

Here's how the closure or interruption of the Key Bridge could affect the global supply chain:
1.Regional Transportation: The Key Bridge is crucial for regional transportation, connecting the Port of Baltimore with important highways and railways. Its closure or interruption could delay the movement of goods in and out of the port, affect regional distribution networks, and possibly cause congestion on alternative routes.
2.Port Operations: The Port of Baltimore is an important hub for international trade, especially for goods moving along the U.S. East Coast. If the Key Bridge is closed for a long time, it could affect the import and export flow through the port, affecting supply chains reliant on goods passing through Baltimore.
3.Multi-modal Connections: Many supply chains rely on multi-modal transport, which involves the smooth movement of goods between ships, trains, and trucks. The Key Bridge plays a key role in facilitating these connections so that any interruption could disrupt the smooth flow of goods between different transport networks.
4.Supply Chain Resilience: Global supply chains are interconnected, so a disruption in one region can have far-reaching effects. If the Key Bridge is unexpectedly closed due to damage or other issues, it could expose weaknesses in the supply chain and push companies to re-evaluate their logistics strategies to enhance resilience.
5.Economic Impact: Any interruption to transportation infrastructure can have economic impacts, whether locally or further afield. Delays in goods transportation could lead to increased costs for businesses, loss of revenue, and potentially cause shortages of goods in the market, all of which could have broader economic impacts.

In summary, while the Key Bridge may not be a direct hub for the global supply chain, its closure or interruption could generate ripple effects beyond its immediate surroundings, highlighting the interconnectedness of modern logistics networks.

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