Baltimore bridge collapse could bring more freight traffic here

The CSRA could soon see more freight traffic as a result of the Francis Scott Key Bridge collapse in Baltimore.
Published: Mar. 27, 2024 at 2:29 PM EDT|Updated: Mar. 28, 2024 at 12:53 PM EDT
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AUGUSTA, Ga. - The CSRA could soon see more freight traffic as a result of the Francis Scott Key Bridge collapse in Baltimore.

A cargo ship plowed into the bridge early Tuesday, sending people and cars plunging into the water and closing a major U.S. port – causing a backlog of cargo ships seeking to unload their goods.

Georgia and South Carolina ports may see more ships, trains could be carrying more freight and major highways like Interstate 20 could be bearing part of the load.

“It’s an incredibly complex system that exists out there that we kind of take for granted. And it takes something like COVID or this horrible tragedy in Baltimore to remind us that we have to constantly invest in that infrastructure,” said Chris Clark, the CEO and president of the Georgia Chamber of Commerce.

Supply chain experts say other ports up and down the East Coast are likely to absorb much of Baltimore’s traffic, avoiding a crisis. But not without some longer shipping times and upheaval.

Baltimore is the No. 1 port for roll-on/roll-off cargo – or vehicles and other things with wheels, like construction and agricultural equipment.

Brunswick is the No. 2 roll-on/roll-off port, so it’s natural for much of Baltimore’s cargo to be diverted to the Georgia port, Clark says.

The Georgia Ports Authority, which owns ports in Savannah and Brunswick, said it has capacity to take on more cargo – although it can’t make up for Baltimore by itself.

Once products are ashore, there has to be a way to them to their final destinations.

Major highways and railroad lines through Georgia would be top candidates – routes like Interstate 20 and the Norfolk Southern rail lines that pass through Augusta.

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“Which train do I put it on, which distribution center do I send it to? So it will take time for all of that to work itself out,” said Clark.

Rick Franza, a professor in the Hull College of Business at Augusta University and an expert on operations and supply chain management, said companies will have to decide which distribution centers they may want to use, whether it’s closer to the area they serve or closer to the port.

All those factors affect where the items from overseas end up.

Georgia-based companies will help answer some of those questions.

Companies like Norfolk Southern.

The railroad said it’s working directly with affected international customers, port partners and state officials to help maintain the integrity of the global supply chain.

“Our network touches every major port on the Eastern Seaboard, and we proactively reached out to help our customers and provide alternate routing solutions,” said Norfolk Southern’s Heather Garcia.

“Significant supply chain events demand a rapid-response approach, frequent communication, and innovative solutions, and Norfolk Southern is doing all three of these things to help our customers and partners navigate through this challenge,” Garcia said.

Then there’s DHL, a global parcel delivery service whose new hub is near Atlanta’s airport.

The company said the accident caused immediate disruptions.

“We are actively collaborating with our customers to assess the situation and explore alternative routes, such as New York, Norfolk and nearby ports, to ensure a smooth flow of shipments,” said DHL’s Constanza Gantes.

Bulk and car carriers will especially be affected, Gantes said.

“Our priority is the safety and security of our customers’ cargo, and we remain committed to providing reliable logistics solutions during these challenging times,” Gantes said.

On the other hand, Seth Millican, executive director of the Georgia Transportation Alliance, expected minimal effects in the Peach State.

“We’re continuing to work closely with the Georgia Department of Transportation and the Georgia Ports Authority to monitor the situation in Maryland and offer any assistance we can to ensure uninterrupted freight and logistics services for the businesses operating here in Georgia,” Millican said. “Our prayers are with the individuals impacted by this tragedy and the heroes working around the clock to recover those still missing.”

Across the Savannah River, South Carolina Gov. Henry McMaster said the Palmetto State can expect to see more traffic because of the bridge’s collapse.

McMaster said the shutdown of the Baltimore port will cause some detours to Charleston.

“We can expect some more ships to come into the harbor and that will mean more traffic on the roads to unload and load. So, I ask everyone if and when that happens, and it most likely will, to have patience and realize it’s because of the tragic situation in Maryland,” McMaster said.

The South Carolina Port Authority said it’s reviewing harbor operations, procedures and state infrastructure needs as a result of the accident.

At the end of the day, Franza feels the consumer likely won’t see much of an impact.

“First of all it’s going to take a while before we see any effect on certain things,” Franza said. “The bad news for inflation is that it’s going to raise the cost of transportation for the goods coming off the ships. Will businesses absorb the cost or pass them along to consumers?”