The Port of Baltimore handled about 3% of total imports from the US east and gulf coasts and 10% of containerized imports from the northeast US in the 12 months ended January 31.
S&P Global Market Intelligence said the March 26 bridge collapse in Baltimore is adding to recent supply chain challenges and any prolonged disruption to port operations could hamper the chain. Supply of goods is affected. Disruption will be felt more acutely locally and the auto, coal, oil and gas and agribusiness sectors will be particularly affected.
The United States Army Corps of Engineers (USACE) announced that the Port of Baltimore could be fully reopened by the end of May.
S&P Global Market Intelligence feels East Coast ports such as New York-New Jersey, Virginia and Georgia need capacity and operational flexibility to handle cargo diverted from the Port of Baltimore.
The market intelligence firm notes that on the sidelines, the bridge accident is likely to limit the deflationary impulse from commodity prices to the extent of temporary costs associated with redirecting freight and trucking flows transferred from manufacturers and wholesalers to their customers.
The Port of Baltimore's imports lean toward industrial inputs and capital goods. Businesses may be inclined to increase prices to offset at least some of the increased shipping or handling costs, especially given the perception of flexible demand. S&P Global Market Intelligence expects this to have a relatively small economic impact.
And while the overall U.S. economy will not be affected much due to its size and scope, the disruption will be felt more locally as passenger and freight traffic is disrupted, causing increased travel time and the ability to reassess costs.
Partial or extended port closures could put pressure on the local economy through layoffs. Estimates show that the Port of Baltimore's cargo and cargo ship operations supported 50,923 jobs, directly and indirectly, in 2023, representing approximately 3.5% of the metropolitan area's employment base. Baltimore-Columbia-Towson City.
The disruption and damage from the accident will not have an immediate credit impact on S&P Global Market Intelligence's rating on the Maryland Transportation Authority, which operates the bridge.
The company expects the most pronounced supply chain disruptions following the crash to occur in the auto, coal, oil and gas as well as agribusiness sectors.
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