Baltimore’s Harbor Faces Shipping Delays After Bridge Collapse: Businesses Concerned About Long-Term Impact

The collapse of the Francis Scott Key Bridge on March 26 has caused a disruption in vessel traffic in and out of Baltimore’s harbor. This has resulted in shipping delays, as reported by the Federal Reserve. Despite this, there have been no widespread price increases reported thus far.

Businesses in the Baltimore area are concerned about the implications of an extended shutdown. The Federal Reserve’s April 17 Beige Book report highlighted these concerns, noting that lead times and potential cost increases are a particular worry for businesses in the region. Shipments have been rerouted to other East Coast ports following the bridge collapse, which was caused by the freighter Dali.

The collapse of the Key Bridge, along with disruptions in the Red Sea, has resulted in some shipping delays nationally. However, these delays have not yet led to widespread price increases. Port officials have opened a third temporary shipping channel on the northeast side of the collapsed bridge to allow for about 15% of the pre-collapse commercial activity. Coast Guard officials have been working to manage the situation and minimize disruptions to shipping traffic.