2024-03-27 15:40:27
Entered2024.03.28 00:40 Modified2024.03.28 00:48
Baltimore Port handles transportation of 850,000 vehicles per year
Cruise operator Carnival is expected to lose 13.5 billion won this year.
Photo = AFP The collapse of the Baltimore Bridge, which has the largest volume of automobile traffic in the United States, has raised concerns about increased automobile supply costs and the impact on inflation. There are many opinions that we need to wait a little longer, but cruise companies such as Carnival are already expecting a hit to their profits.
According to CNBC and Market Watch on the 27th (local time), auto manufacturers are assessing the ripple effect as the Port of Baltimore was closed after a bridge collapsed following a collision with a cargo ship the morning before. Six people working on the bridge were presumed dead. It is reported that due to this accident, logistics companies are immediately relocating cargo volume to other ports on the East Coast of the United States.
Volkswagen Group said it did not expect any impact on shipping operations but could experience trucking delays due to traffic flow diversions in the area. Toyota said it does not currently expect significant disruption, but is assessing the situation to determine long-term impacts and has countermeasures in place.
General Motors, Ford, Nissan and Mitsubishi all said they were assessing the situation and did not expect any significant disruptions. Last year, the Port of Baltimore handled 847,158 cars and light trucks, according to the Maryland governor’s office.
After this accident, the auto industry diverted to other ports such as New York, New Jersey, Norfolk, Georgia, and South Carolina, increasing the possibility of increased transportation times and increased costs.
This incident is expected to be another cost burden for the global shipping industry, which was forced to detour its shipments to Africa due to the Houthi rebels’ attack on ships passing through the Suez Canal. Christian Löloff, CEO of logistics platform Container Change, said the Port of Baltimore is “an important gateway for specialized cargo and bulk handling that plays a key role in the supply chain.” In particular, he said, “delays in freight movement can lead to inventory shortages, impacting businesses that rely on just-in-time delivery, such as the automotive industry, which requires assemblies to be brought in from all over the world.”
Chris Rowe, an economist at FHN Financial, said the collapse of the Baltimore bridge added one more problem to the growing supply chain cost problem. Given the traffic congestion in the Suez and Panama Canals, damage to Russian oil infrastructure and loss of bridges, “it is reasonable to think there will be an impact on inflation as a result,” he said.
Cruise operator Carnival (CCL) announced today that it expects its annual profits to decrease by up to $10 million (KRW 13.5 billion) due to the collapse of the Baltimore Bridge. Carnival CEO Josh Weinstein said one of the company’s cruise ships uses the Baltimore port year-round and that the company had temporarily secured space for the ship in Norfolk, Virginia.
Guest reporter Kim Jeong-ah [email protected]
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