Key insights:
1 The container ship that hit the Key Bridge in Baltimore may have suffered a loss of propulsion, causing the crash. No timeline has been offered for reopening the port, though MSC thinks it will be at least a couple months.
2 The Port of Baltimore is not a major hub for container traffic, and is only the fifth largest on the East Coast. Its 1.1 million TEU handled in 2023 represent just 5% of total US ocean import volumes. Locally, shippers dependent on Baltimore will face the challenge of urgently finding alternatives and will also likely incur higher costs for arrangements farther away from their desired hub.
3 Regionally, imports headed for Baltimore will be rerouted to alternative ports which could cause some congestion and delays for shippers. But ocean freight is now in its slow season between Lunar New Year and peak season. And with no significant congestion at any of the major East Coast ports, there could be some disruptions and higher rates in the near term as the market adjusts but volumes should be able to be shifted to other ports without causing too much of a disruption.
Ocean rates - Freightos Baltic Index:
• Asia-US West Coast prices (FBX01 Weekly) fell 12% to $3,728/FEU.
• Asia-US East Coast prices (FBX03 Weekly) fell 10% to $5,284/FEU.
• Asia-N. Europe prices (FBX11 Weekly) fell 18% to $3,189/FEU.
• Asia-Mediterranean prices (FBX13 Weekly) increased 9% to $4,532/FEU.
Air rates - Freightos Air index
• China - N. America weekly prices decreased 5% to $5.65/kg.
• China - N. Europe weekly prices fell 10% to $3.52/kg.
• N. Europe - N. America weekly prices fell 4% to $2.06/kg.
Analysis
The 10,000 TEU container vessel Dali, operated as part of the Maersk/MSC 2M alliance on its Asia - US East Coast TP12/Empire service was on its way out of the Port of Baltimore and heading to Colombo, Sri Lanka when it may have suffered a loss of propulsion causing it to collide with a support of the Key Bridge early Tuesday, leading to the bridge’s collapse and several casualties. Read More→
