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The impact of the Baltimore Bridge collapse on global supply chains

At 1:27 AM on Tuesday, March 26th, U.S. Eastern Time, a shocking accident occurred in Baltimore, when the container cargo ship “Dali” crashed into the “Francis Scott Key” bridge, causing the roughly 2.5 km long bridge to collapse in just a few seconds. The bridge was not only an important transportation hub for Baltimore and the entire state of Maryland, but also an important channel connecting the region with the outside world. The collapse of the bridge not only immediately caused high attention from the local government, but also brought the entire state into a state of emergency, expected to have a profound impact on the U.S. and even the global supply chain.

As one of the most important ports on the eastern coast of the United States, Baltimore carries huge amounts of cargo each year, including coal, cars, timber and paste.But due to this accident, the port was forced to close and the impact is expected to last for weeks or even longer.The time for this incident was especially unfortunate, as the global supply chain was already vulnerable to other factors such as the Panama Canal drought and Red Sea shipping facing the risk of missile attacks, the closure of the Port of Baltimore undoubtedly aggravated supply chain tensions.

The car and coal industries were hit. Baltimore Port is not only an important gateway for cars to the East Coast of the United States, but also the second largest port for U.S. coal exports. According to Global Market Intelligence, although Baltimore Port only handles about 3% of total imports from the East Coast of the United States and the Gulf of Mexico, its impact is huge for European automakers such as Mercedes-Benz Group, Volkswagen and BMW, and others, because these manufacturers have factories in the port and its surroundings. Ford Chief Financial Officer John Laurer’s remarks reflect the anxiety and reluctance of many companies in the face of this emergency, and they have to look for alternatives to shift goods to other ports on the East Coast at home or elsewhere.

Meanwhile, the number of ships trapped inside ports is increasing, including cargo ships, car transport vessels and tankers, etc. This has not only affected the itinerary and cargo transportation of these ships themselves, but also caused a chain reaction to the economy and logistics around the port. According to the American Truck Transport Association, the value of cargo through this bridge is approximately $28 billion annually, and the impact of this collapse on the economy is obvious.

In addition, this event was undoubtedly a major blow to the city of Baltimore. As the largest city in Maryland, Baltimore has been struggling in recent years to overcome the stagnation of economic development, with the problem of poverty and crime in the community being high. The bridge is not only an important transport hub for the city, but also a key to its revival as a logistics and e-commerce center. The collapse of the bridge has not only had a direct impact on city transport, but also shaded the economic recovery and future development.

After the event, the world has raised demands for infrastructure security and reliability. Jonna Freemark, a researcher at the U.S. Institute for Urban Studies, pointed out that we rely on infrastructure systems to meet daily needs and that when the system is suddenly cut off, it is a huge crisis. This event is not only a warning for Baltimore, but also for the entire U.S. and global supply chain, but also a profound reflection on the importance of infrastructure construction and maintenance.

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