In the wake of the collapse of the Francis Scott Key Bridge in Baltimore last week, East Coast ports have been put on alert for cargo diversions as the supply chain comes under significant strain.
Transportation Secretary Pete Buttigieg says it’s important “to our national supply chains to get that port back up and running as quickly as possible.”
So what’s happening in the meantime? Bloomberg shipping data shows 29 bulk cargo, container, and vehicle carriers were anchored outside ten major US ports up and down the East Coast on Saturday,
From Zero Hedge:
Last week, credit ratings agency Moody’s warned that the prolonged closure of the port would ripple through the local economy and could spark negative credit risk events for the city and state:
The bridge collapse threatens to disrupt aspects of the State of Maryland (Aaa stable) and City of Baltimore (Aa2 stable) economies. The suspension of shipping traffic to the Port of Baltimore will likely divert cargo to other East Coast ports, which may affect jobs and tax revenue. The accident also has the potential to hurt the transportation and warehousing sector, though that accounts for a small share of state GDP.
More from Moody’s about the credit fallout that could soon hit Baltimore:
In recent years, the state and Baltimore County (Aaa stable) have provided incentives and worked with developers to facilitate the redevelopment of Sparrows Point, a more than 3,000-acre contaminated industrial site once home to a Bethlehem Steel plant. Over the last nine years, Sparrows Point has seen almost $2 billion of private investment resulting in the development of 14 million square feet of warehousing and distribution facilities. With the Key Bridge providing the only direct access route between Sparrows Point and Baltimore/Washington International Thurgood Marshall Airport, further development at Sparrows Point could be delayed.
The one question that baffles us is why Baltimore didn’t install barriers or pilings around critical bridge supports to prevent ship strikes during major port expansions over a decade ago. Someone needs to be held accountable. Were woke officials focused on defunding the police, social justice, and DEI instead of critical infrastructure?
More over at Zero Hedge:
Baltimore Bridge Collapse Has East Coast Ports On Alert For Cargo Diversions https://t.co/9J1bYOzMjz
— zerohedge (@zerohedge) April 1, 2024
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