To readers of the Economics Daily, Evening Briefing, 5 Things to Know and Surveillance newsletters: We wanted to share this special edition [View in browser](
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To readers of the Economics Daily, Evening Briefing, 5 Things to Know and Surveillance newsletters: We wanted to share this special edition of the Supply Lines newsletter below on the impacts of the Baltimore bridge collapse. If you're not already signed up for Supply Lines, [please do so here]( to track the latest developments. The US economy has withstood a series of supply chain shocks over the past five years, none more sudden and visibly dramatic than the container ship that slammed early Tuesday into Baltimoreâs Francis Scott Key Bridge, sending large spans of the nearly 50-year-old steel structure tumbling into the river below. First and foremost, the disaster might have [human consequences](, with rescuers as of Tuesday afternoon still searching the water for anyone missing. Next will come months of soul-searching for answers to the bigger questions for politicians, industry executives and engineers. How did the bridge give way so easily? Whoâs going to [pay for the damage]( and how long will the fix take? Where was the backup steering system, the tugs to assist in exactly this kind of a late-night emergency, or the protective safety barriers around the support columns? Are the big ships of today too big to maneuver safely in old American seaports? In the meantime, hereâs what we know about the immediate [economic fallout](: Baltimore isnât a huge port for containers â about 3% of the total on the East and Gulf Coasts â but it handles the nationâs largest volume of automobiles, as well as a lot [less-consumer-facing items]( like coal, gypsum and lumber. With total trade last year amounting to about $80 billion, every day Baltimore is closed is another $217 million thatâs not crossing its docks. Car companies like Ford and GM [arenât wasting time]( finding other routes for parts and vehicles. But the options may involve costlier transportation and longer shipping times: The nationâs No. 2 port for car carriers is in Brunswick, Georgia â about 700 miles south. Farmers gearing up for planting season may also feel the impact. According to Dean Croke, principal industry analyst at DAT Freight & Analytics, Baltimoreâs proximity to the Midwestâs major farm and construction equipment manufacturers âhas helped it become the leading U.S. port for importing combines, tractors, hay balers, excavators, and backhoes.â Watch for a change in the [directional flow]( of goods. Flexport CEO Ryan Petersen said importers will likely want to send their cargoes through West Coast ports and move them on trains eastward to avoid any bottlenecks at East Coast ports. Many were doing so already to avoid potential disruptions involving East Coast dockworkers in contract negotiations this year. Extensive Delays Chris Rogers, head of supply chain research at S&P Global Market Intelligence, said âbridge reconstruction and cargo delays are likely to be extensive,â though the diversions should help soften the economic blow. Bethann Rooney, port director of the Port Authority of New York and New Jersey, said that her facility is âproactively working with our industry partners to respond as needed and ensure supply chain continuity along the East Coast.â While the bridge collapse will have a limited impact on the broader economy, it âis just another reminder of the vulnerability of the nationâs infrastructure and supply chains,â said Moodyâs Analytics Chief Economist Mark Zandi. â[Brendan Murray]( in London [Click here]( for more of Bloomberg.comâs most-read stories about trade, supply chains and shipping. Like Supply Lines? Donât keep it to yourself. Colleagues and friends can [sign up here](. We also publish [Economics Daily](, a briefing on the latest in global economics. For even more: Follow [@economics]( on Twitter and [subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters. How are we doing? We want to hear what you think about this newsletter. [Let our trade tsar know](mailto:brmurray@bloomberg.net). Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before itâs here, itâs on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals canât find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Supply Lines newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox.
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