Baltimore Bridge Collapse Disrupts Supply Chains, but Lessons from Pandemic Help Mitigate Impact

The collapse of the Francis Scott Key Bridge in Baltimore, Maryland, on March 26, 2024, has disrupted global supply chains, but lessons learned from the COVID-19 pandemic have helped mitigate the impact. The bridge collapsed when the 984-foot cargo ship Dali crashed into a support column, killing six construction workers and halting most maritime traffic through the city's port.

Salvage crews have been working around the clock to clear thousands of tons of debris from the entrance to the harbor. On Thursday, April 25, the first cargo ship, the Balsa 94, passed through a newly opened 35-foot deep-water channel, marking an important step in the ongoing cleanup and recovery effort. Two more commercial ships followed, including a vehicle carrier.

The Port of Baltimore supports over 15,000 jobs and handled more than 52 million tons of international cargo in 2023, worth about $80.8 billion. The collapse has impacted thousands of longshoremen, truckers, and small business owners, prompting officials to prioritize reopening the port and restoring its traffic to normal capacity.

Why this matters: The disruption at the Port of Baltimore has significant implications for the regional economy and global supply chains. The lessons learned from the COVID-19 pandemic, such as leveraging technology for real-time visibility and collaboration, have helped companies navigate the recovery process and mitigate the impact of the bridge collapse.

The city has filed court documents arguing that the owner and operator of the Dali should not be able to avoid liability, claiming the vessel was "unseaworthy" when it left the port. The FBI and the National Transportation Safety Board are investigating the cause of the ship's power loss and the subsequent collision with the bridge.

The collapse has also dealt a significant financial blow to the supply chain, with two major North American rail companies, CSX and Norfolk Southern, expected to see at least $25 million per month in negative revenue impacts. Both companies have had to divert a portion of their overall Baltimore volumes elsewhere and have launched new dedicated intermodal service lines to facilitate the flow of freight between Baltimore and New York.

The new 35-foot channel is the fourth temporary channel created to circumvent the damage, and it will remain open until Monday or Tuesday of next week.

Key Takeaways

• Francis Scott Key Bridge in Baltimore collapsed on March 26, 2024, disrupting global supply chains.
• Lessons from COVID-19 helped mitigate the impact; first cargo ship passed through new 35-ft channel on April 25.
• Port of Baltimore supports 15,000+ jobs and handles 52M+ tons of cargo worth $80.8B annually.
• Collapse impacted thousands of workers; officials prioritized reopening the port to restore normal capacity.
• Collapse expected to cost CSX and Norfolk Southern at least $25M per month in revenue impacts.