Baltimore Bridge Collapse Causes Equipment Import Concerns

On March 26, a container ship slammed into Baltimore’s Francis Scott Key Bridge, resulting in the structure’s collapse and the tragic loss of six construction workers.

Aside from the impacts to the families that lost loved ones, the destroyed bridge has physically cut off key coal, container and automobile terminals at the Port of Baltimore from the outside world. 

Last year, the port’s terminals processed more than 47 million tons of combined import and export products, generating about $3.3 billion in personal income, 15,330 direct jobs and 139,190 related jobs, the state of Maryland said.

The port of Baltimore is a major gateway for imports and exports, including construction materials like steel, cement, heavy machinery and raw materials. The port’s closure and subsequent scaled-back operations, have already led to delays in receiving essential construction supplies, affecting project timelines and increasing costs ahead of the busy Spring and Summer building calendar.

Because the port is 150 miles closer to the Midwest markets than any other mid-Atlantic harbor, Baltimore has become the No. 1 U.S. port for overall roll-on/roll-off (ro-ro) cargo volume, No. 1 for farm machinery imports and exports ($5 billion) and one-third for construction machinery ($6.6 billion) last year. In addition to geography, the port also has nearly 200 acres of pavement at the Dundalk Marine Terminal where it can handle more ro-ro equipment than neighboring ports.

Since ro-ro cargo constitutes a substantial portion of Baltimore's cargo volume, delays in deliveries of equipment will put pressure on builders as the weather warms and farmers as the planting season approaches.

Heavy Equipment

Baltimore is ranked No. 3, nationally, for imports and exports of construction equipment, according to Interact Analysis, citing U.S. Census figures — highlighting that equipment imports outpace exports by more than fivefold. Heavy equipment ro-ro volume surpassed automobile volume in 2022 and hasn’t looked back since.

Last year, more than 1.3 million tons of ro-ro cargo crossed Baltimore terminals, which include farm and construction machinery. Since 2010, more than 600,000 tons of non-automobile ro-ro cargo have transited the port each year; the volume of heavy machinery surpassed automobiles in 2022.  

As mentioned earlier, Baltimore’s proximity to Midwest construction equipment manufacturers has also helped it become the leading U.S. port for importing excavators and backhoes.

Raw Materials

The collapse of the Key Bridge has snarled supply chains, impacting industries like construction, who are reliant on timely imports and exports of equipment and materials. 

More than $1 billion in forest products were imported through Baltimore in 2023 (1.98 million cubic meters), which was nearly 4% of all imported forest products. The port also serves as a significant conduit for industrial alcohols and fatty acids (11% of all U.S. imports), coffee (6.2%) and spices (9.1%). 

What’s Ahead

Despite these challenges, the global freight network has shown incredible resilience in adapting to these ever-more common disruptions. Nearby ports in Chesapeake, Virginia, and Philadelphia are sure to see increased activity as diversions occur.

While the Port of Baltimore's direct impact on national trade is relatively small, its role in providing access to regional builders to international markets cannot be understated. The collapse of the Francis Scott Key Bridge serves as a stark reminder of how interconnected our world truly is, and the importance of efficient and reliable transportation infrastructure for sustaining vital economic activities.

Overall, the closure of the Baltimore port can ripple through the construction industry, affecting supply chains, project schedules, costs, and regional economic dynamics. It underscores the interconnectedness of industries and the importance of resilient supply chain strategies in mitigating risks and ensuring continuity in construction operations.