Source: Gasgoo
A bridge collapsed on March 26 closed the Port of Baltimore. U.S auto company General Motors and Ford rerouted freight and said the impact of the bridge collapse had been minimal.
According to the Maryland Port Authority, the Port of Baltimore is the nation’s busiest auto shipping port, handling at least 750,000 vehicles in 2023. Motor vehicles and auto-parts accounted for 42 percent of total imports at the Port of Baltimore.
Image source: LuTou media
GM said: “We expect this situation to have minimal impact on our operations. We are working to reschedule vehicle traffic to other ports.”
Ford Chief Financial Officer John Lawler said the bridge collapse would force the company to move cargo such as parts to other ports and have an impact on its supply chain. If there is a need for flexibility in the short term, our team has found transportation alternatives.”
Stellantis said that the company is discussing contingency plans with various transportation providers to ensure uninterrupted delivery of vehicles to our customers.
Industry insiders said it was too early to say what impact of the accident would have on the auto industry. John Bozzella, CEO of the Alliance for Automotive Innovation, said: “However, there’s certainly going to be some disorder. Baltimore is the No. 1 auto port in the nation, and we are reaching out to federal officials to help them understand the scale of the auto business there.”
John Kartsonas, a shipping analyst, investor and managing partner at Breakwave Advisors, said that Baltimore is an important port for handling imported consumer goods, automobiles and other imported goods. Kartsonas also indicated, “Although there are many other ports that could take over the work here, such as New York Harbor, it will still take some time for the current situation to be resolved. There will certainly be delays in the delivery of goods.”
Other transportation businesses reported no major impact. Toyota said, “While Baltimore is not a major port for our North American operations, there will be some impact, primarily on vehicle exports. We do not expect major supply chain disruptions, and we are closely assessing the situation to determine the long-term impact and response.”
Volkswagen Group said the Baltimore plant was not affected because it is located on the east coast of the bridge collapse. Nissan also said it does not expect a significant impact at this time.
BMW said the bridge collapse does not affect its vessels, so it does not expect a major impact. BMW added that its overland trucking would be diverted. Mercedes said the incident had no impact on its vehicle exports or parts supplies at the company’s plant in Tuscaloosa, Alabama.
Volvo Group, which makes trucks, construction equipment and engines, said they will check inventories at its U.S. production facilities to determine when there would be a supply disruption in a worst-case scenario. Volvo Group also added that there was no major impact currently.
