Business & Tech
Jobs In Limbo, Supply Chain Resilient After Baltimore Bridge Collapse
Thousands of shipping jobs are in limbo after the Key Bridge collapse. Car companies are rerouting shipments as port traffic is suspended.
![An American flag flies on a moored boat as the container ship Dali rests against wreckage of the Francis Scott Key Bridge, Tuesday, March 26, 2024, as seen from Pasadena, Maryland.](https://patch.com/img/cdn20/ap/24287450/20240327/074924/styles/patch_image/public/ap24086802252303___27153125102.jpg)
BALTIMORE, MD — Thousands of jobs are in limbo as the Baltimore Harbor remains blocked by the shipwreck that toppled the Francis Scott Key Bridge on Tuesday. The Port of Baltimore is now sealed off from the Chesapeake Bay, as bridge debris blocks the Patapsco River's channel.
That's forcing shipping companies to re-route away from one of Maryland's biggest job sources. Eleven vessels are stuck inside the port, and 12 are anchored outside waiting to enter.
Experts don't expect major supply chain disruptions, but they anticipate employment struggles during the port blockage. Car shipments will be among the most affected, but manufacturers are confident buyers won't be inconvenienced.
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"Everyone is kind of trying to figure out what the heck is going on. The bigger question is when will we be able to get back to work, let alone in that timeframe do we get paid or not," Philip Evers, an associate professor of supply chain management at the University of Maryland, told Patch.
Read all of Patch's Key Bridge collapse coverage here.
Find out what's happening in Baltimorewith free, real-time updates from Patch.
Jobs In Limbo
The Port of Baltimore generates about 15,300 direct jobs. Another 140,000 jobs are linked with the port. This includes everybody from crane operators to truck drivers and rail conductors.
The port is also responsible for nearly $3.3 billion in salaries, $2.6 billion in business revenues and $395 million in taxes.
"We do not know how long vessel traffic will be suspended," the port said on Facebook. "As soon as that is determined we will provide an update. Until then please keep those involved in your prayers."
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Lawmakers are scrambling to pass emergency funding for workers.
State Sen. President Bill Ferguson (D-Baltimore City) said he's "drafting an emergency bill to provide for income replacement for workers impacted by this travesty." The legislation will be sponsored by Del. Luke Clippinger (D-Baltimore City).
"The economic and stability loss to the thousands impacted in the days ahead cannot be understated," Ferguson said Wednesday on X, the platform formerly known as Twitter.
The bill will face a speedy timeline. The state's budget must pass both chambers of the Maryland General Assembly by April 1. Legislative session ends on April 8.
"Yesterday I spent hours talking to labor leaders, dock workers, small business owners, and large port industry leaders who all had the exact same message: 'We must unlock the channel to the Port of Baltimore,'" Ferguson said on X. "They're right. And until we do, there is enormous cost to families."
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Shipping Routes Shuffled
Experts don't foresee supply chain disruptions for most consumers. Some industries will be more affected than others.
The port handles more bulk material than consumer goods, Evers said. That's why he doesn't anticipate any price hikes or shipping delays.
Amazon is planning to adjust its deliveries as needed, but it doesn't predict any snags.
"We're assessing the immediate and future impacts to our employees and delivery partners, as well as the surrounding community and will make any adjustments to our operations that are needed," Amazon spokesperson Austin Stowe told Patch in an email. "We also stand ready to support the community in any way we can."
According to the Bureau of Transportation Statistics, currently stuck behind the fallen bridge are:
- Four Maritime Administration Ready Reserve Force vessels
- Three bulk carriers
- Two general cargo ships
- One oil/chemical tanker
- One vehicle carrier
Anchored vessels in the open waters outside the bridge include:
- Nine bulk carriers
- Two general cargo vessels
- One vehicle carrier
Evers pointed to cars, coal, lumber and paper pulp as some of the port's biggest commodities that could be disrupted.
The port handled 847,000 cars and light trucks in 2023. That was the 13th consecutive year that Baltimore has led all U.S. ports in that category.
Stellantis, which makes Dodge and Jeep, called the port an "important waterway for the automotive industry."
"We are initiating discussions with our various transportation providers on contingency plans to ensure an uninterrupted flow of vehicles to our customers and will continue to carefully monitor this situation," Stellantis spokesperson Jodi Tinson told Patch in an email.
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Other car manufacturers, like Toyota, expect to handle the port blockage with minimal shuffling.
"While Baltimore is not a primary port for our North American operations, there will be some impact, primarily on vehicle exports," Toyota spokesperson Zachary Reed said in a statement. "At this time, we do not anticipate a significant disruption, but we are evaluating the situation closely to determine the longer term impact and countermeasures."
General Motors is "working to re-route any vehicle shipments to other ports as the recovery work continues," spokesperson Tara Stewart Kuhnen said in a statement.
Volkswagen ships into Tradepoint Atlantic, which has reopened. The German car company's Wednesday shipment was the first to any Baltimore port since the bridge collapsed.
Tradepoint Atlantic, a 3,300-acre hub in Sparrows Point, lies on the outer edges of the harbor and wasn't sealed off by the shipwreck.
"Tradepoint Atlantic is committed to being an active partner during the recovery, clean-up, and rebuilding process," Managing Director Kerry Doyle said in a press release announcing the reopening. "Our primary focus is providing the facilities needed to expedite channel clearing efforts so that the Port of Baltimore can resume normal commercial activities."
What's Next For Port?
Tinglong Dai is a professor of operations management and business analytics at Johns Hopkins University.
Dai thinks car shipments will divert to Brunswick, Georgia. He is already hearing reports of container ships diverting to Norfolk, Virginia, and Newark, New Jersey.
Many shipping companies are negotiating their agreements for the next year, Dai said. He's curious if shippers will divert to other East Coast hubs.
"I do think that's something that the system is able to absorb," Dai said at a Wednesday press conference. "The actual impact is very, very local. This is definitely not a national supply chain crisis."
Lt. Gen. Scott Spellman, commander and chief of engineers for the Army Corps of Engineers, told CNN that 1,000 engineers have been activated to help clear Baltimore’s shipping channel.
Their priorities are:
- Get the steel truss out of the 700-foot-wide by 50-foot-deep channel, and remove concrete supports, then look at the bottom of the channel to make sure it's clear so shipping traffic can resume
- Stabilize the thousands of containers on the ship with the help of the Coast Guard
- Remove the parts of the bridge truss resting on the ship
- Take out the remaining steel and concrete at the bottom of the waterway
U.S. Secretary of Transportation Pete Buttigieg told CNN the top issues for his department are:
- Get the bridge replacement up
- In the meantime, minimize traffic impact on Maryland highways
- Open the Port of Baltimore again
- Manage supply chain issues
The state of Maryland just submitted its first emergency federal funding request for port cleanup, he said. Federal Department of Transportation staffers are working with Maryland officials on bridge design and planning.
Buttigieg said other East Coast ports can handle the extra load in the meantime, they have additional capacity they can surge.
"We're not going to allow red tape to present barriers to what needs to be done," Buttigieg said.
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