Port of Baltimore shutdown after bridge collapse may disrupt supply chains, consumer costs

WASHINGTON (7News) — A vital East Coast industrial shipping artery is closed for the foreseeable future, potentially sending shockwaves through the regional economy and its supply chains. Baltimore’s Port is a linchpin in the East Coast's shipping infrastructure. Annually, the port handles millions of tons of cargo, translating to billions of dollars in value.

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On Tuesday, shipments including automobiles, agricultural machinery, and construction equipment are marooned, prompting a scramble for alternate ports to offload the goods. No matter where they land, overall shipping costs are expected to rise as equipment will now need to be shipped longer distances by rail or road. Last year, more than 840,000 new cars and trucks shipped through the Port of Baltimore --- the most of any American seaport.

“This will affect us weeks down the road and every day that goes by that that port is closed it creates more of a backlog and more of a shortage,” Jamie Darvish, the head of the Washington Area New Car Dealers Association and operator of 30 dealerships, said.

The economic downstream effects are not confined to vehicle sales. Baltimore’s port is not only an automotive and industrial shipping hub but a hub for those machine’s replacement parts and machinery. Until the port channel is cleared those shipments must reroute through longer, costlier paths.

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“What we’re hoping is going to happen is there’s already enough of a supply in the depos and in the port that, that ripple effect is going to be weeks down the road and by the time it hits they can double up with shipments,” Darvish said.

Adam Rottman, the Director of CBP Baltimore underscored the port’s status as the East Coast’s premier vehicle and heavy equipment entry point in a 2023 interview with 7News.

“When it comes to autos, roll on roll off, vehicles, heavy machinery, cars, trucks, we’re number one on the East Coast. Anything can be imported in this country can get basically anywhere in this country in just a few days,” Rottman said of Baltimore’s proximity to American consumers and industry.

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The port’s closure could affect the more than 15,000 jobs tied to Baltimore’s shipping industry, as well as an additional 140,000 jobs indirectly connected to it across the county, according to state officials. The Port of Baltimore generates approximately $400 million in tax revenue for Maryland each year.