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Thursday, March 28, 2024
bridge attacks ship
Here’s the video of the crash as it happened.
Here are today’s top stories
Biden said on Tuesday that the Army Corps of Engineers will lead the effort to clear the channel port of Baltimore following the collapse of the Francis Scott Key bridge. A container ship that apparently lost power hit the structure overnight in an incident officials have so far deemed an accident. The bridge allows commercial ships to enter the Port of Baltimore, one of the top ports in the US in terms of volume and value of cargoes. “It’s my intention that federal government will pay for the entire cost of reconstructing that bridge,” Biden said in a news conference. “I expect the Congress to support my effort.”
Parts of the Francis Scott Key Bridge rest on a container ship in Baltimore harbor after the vessel hit the structure. Photographer: Jim Lo Scalzo/EPA-EFE/Shutterstock
A mayday warning from the ship that slammed into a Baltimore bridge saved lives by prompting officials to stop cars from crossing, Maryland Governor Wes Moore said.
“We’re thankful between the mayday and collapse we had officials that were able to begin stopping the flow of traffic,” Moore told reporters Tuesday.“Many of the vehicles were stopped before they got onto the bridge, which saved lives in a very, very heroic way.”
Insurers face claims of as much as $3 billion following Tuesday’s collapse of the Francis Scott Key Bridge in Baltimore, with firms on the Lloyd’s of London market most exposed, Barclays Plc analysts said.
Insurance claims for damage to the bridge alone could reach $1.2 billion, the bank said in a note, predicting further potential liabilities of $350 million to $700 million for wrongful deaths and yet-to-be-determined amounts for business interruption
Baltimore Bridge Collapse Will Redirect Cargo Across the US
Expect logistics snarls, no major economic hit, analysts say
Ports along US East Coast stand ready to help absorb shock
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IndustriesClosed 26/03/2024
Singapore to Send Safety Officials to Baltimore Bridge
Francis Scott Key Bridge collapsed after being struck by cargo ship
Six workers still missing after the disaster early Tuesday
Biden wants US to pay to rebuild bridge after ‘terrible accident’
Maryland governor says no estimates on when shipping will resume
The collapsed Francis Scott Key Bridge after being struck by the Dali container ship, in Baltimore, on March 26.Photographer: Al Drago/Bloomberg
Thanks for joining us. Here are key takeaways from our coverage of the collapse of the Francis Scott Key Bridge Tuesday in Baltimore:
A major commuter bridge in Baltimore collapsed early Tuesday morning after being struck by a container ship, sending vehicles into the water and threatening chaos at one of the most important ports on the US East Coast. US President Joe Biden said all indications are that the disaster is the result of a “terrible accident.” Six workers who were on the Francis Scott Key Bridge at the time are still missing.
The crew on the Singapore-flagged Dali issued a mayday warning prior to the collision, which enabled authorities to stop the flow of new vehicles onto the bridge. That decision “saved lives,” said Maryland Governor Wes Moore.
The bridge collapse will cause weeks or months of transportation disruptions in the Mid-Atlantic region and accelerate a shift of cargo to the US West Coast. Vehicles carrying certain hazardous materials are being diverted all the way around the western portion of the Baltimore Beltway, because they aren’t allowed in harbor tunnels.
US President Joe Biden said he wants the federal government to pay for rebuilding the bridge, though that will require approval from Congress.
A routine safety inspection in June in San Antonio, Chile, found issues related to some of the gauges and thermometers linked to the Dali’s propulsion and auxiliary machinery, according to Tokyo MoU, an organization that promotes safe shipping. The issues weren’t grounds to detain the ship and it was unclear exactly what they were.
We’re going to wrap up our live coverage of the aftermath of the collapse of Baltimore’s Francis Scott Key Bridge shortly, but you can continue to follow all the latest developments on the Terminal and at Bloomberg.com.
The disaster recalls other challenges for US supply chains, including access to the Red Sea and the Panama Canal, along with the potential for strike action at ports later this year, according to Chris Rogers, S&P Global Market Intelligence’s supply-chain research head.
He sees extensive delays for both bridge reconstruction and cargo.
The port handled ~3% of all US east and Gulf coast imports and 10% of US northeast imports of containerized freight in the 12 months up to Jan. 31, Rogers says.
S&P highlights wood and construction machinery as among the most exposed sectors:
The scale of the disaster and the Key Bridge’s importance mark the accident as one of the worst US infrastructure failures in decades, and its impact stands to play out for years across the Baltimore region and the US economy. As the country grapples with the fallout, pier protections will likely become a focus on other American bridges.
Parts of the Francis Scott Key Bridge after a container ship collided with a support. Photographer: Steve Ruark/AP Photo
Homendy was asked about reports of a power outage on board the Dali prior to the impact, but said it would be “something that we have to verify through our investigation.”
She declined to answer questions on injuries and fatalities.
Homendy also says that Singapore’s Transport Safety Investigations Board as well as the Maritime & Port Authority of Singapore will be sending officials to the bridge collapse site.
NTSB Chair Homendy says the agency has a team of 24 people on the ground, including experts on nautical operations.
There’s “not a lot we can share right now....The NTSB doesn’t speculate, we provide facts,” Homendy says.
She adds that she has been in touch with her counterpart in Singapore. The Dali was sailing under the Singaporean flag.
The NTSB briefing is underway. Some initial headlines from Chair Jennifer Homendy’s remarks:
NTSB Chair: Haven’t Verified Number, Status of Crew Aboard Dali
Search and Rescue Still Underway in Bridge Collapse
Bloomberg Terminal subscribers can follow the NTSB briefing on {LIVE <GO>}. The event will also be available on the NTSB’s YouTube channel here.
FALLOUT: The bridge collapse Tuesday that shut the Port of Baltimore and closed a major highway will cause weeks or months of transportation disruptions in the Mid-Atlantic region and accelerate a shift of cargo to the US West Coast, write Bloomberg’s Brendan Murray, Augusta Saraiva and Enda Curran.
As local, state and federal officials focus on rescue efforts and wouldn’t speculate on how long the nation’s busiest automobile port might stay closed, logistics experts and economists started to assess the fallout. The emerging consensus: It’s going to be a logistical choke-point for a while, but a localized one that shouldn’t derail an otherwise solid US economy, with companies able to adapt.
A routine safety inspection in June 2023 at San Antonio, Chile, found issues related to some of the gauges and thermometers linked to the Dali’s propulsion and auxiliary machinery, according to Tokyo MoU, an organization that promotes safe shipping. The issues weren’t grounds to detain the ship and it was unclear exactly what they were.
A standard ship examination by the US Coast Guard later last year found no deficiencies, the Equasis marine database showed.
Marty Durbin, senior vice president of policy at the U.S. Chamber of Commerce, issued statement in response to the collapse of the bridge. It reads, in part:
“As a critical thoroughfare for Maryland and the East Coast, this bridge has kept people, businesses, and communities connected. Unfortunately, its prolonged closure will likely disrupt commercial activities and supply chains that rely on the bridge and Port of Baltimore each day. We will support the many individuals, businesses, and communities affected by this incident and help to both identify and implement solutions during this challenging time.”
Here’s our deeper look into how the situation in Baltimore could snarl energy supply chains, depress shares in coal companies and impact electricity generation in India:
Here’s video of Biden’s remarks from the White House today, in which he vows “to move heaven and earth to reopen the port and rebuild the bridge”:
The Maryland Transportation Authority has $350 million in insurance per occurrence for property damage, including to bridges, and for business interruption, it said in a recent statement related to a bond sale.
That policy kicks in after the agency pays for the first $50 million in costs through a self-insured retention. Payouts related to the disaster could end up being reimbursed if a third party is found responsible, Bloomberg Intelligence’s Eric Kazatsky said.
Some cargo destined for Baltimore is likely to be diverted to ports in both New York and New Jersey, according to the states’ Port Authority.
“The Port Authority is in touch with our counterparts in Baltimore, and we stand ready to assist with emergency resources and any other assistance that may be needed,” Bethann Rooney, port director of The Port of New York & New Jersey, said in a statement. She added that the port “is proactively working with our industry partners to respond as needed and ensure supply chain continuity along the East Coast.”
The Port of New York and New Jersey handled about 20% more cargo in 2021 than it does now, meaning that it has the ability to provide more capacity if needed.
Here’s our full story on Biden’s comments, in which the President said that the US government ought to pay to rebuild the bridge:
“It’s going to take some time,” Biden said. “The people of Baltimore can count on us to stick with them at every step of the way until the port is reopened and the bridge is rebuilt.”
Maryland Transportation Authority’s website home page points visitors to a dedicated site for news about the accident.
“The Port of Baltimore is still open for truck transactions,” the site says. “Vessel (waterway) traffic into and out of the Port of Baltimore is suspended until further notice.”
Updated 1 day ago
The NTSB’s briefing has been rescheduled to 2:30 p.m. New York time.
The president says the Army Corps of Engineers will lead the effort to clear the channel port of Baltimore.
“We’re gonna get it up and running again as soon as possible,” Biden says. “The bridge is also critical for travel, not just from Baltimore but for the Northeast Corridor.”
Updated 1 day ago
President Biden says that the US Coast Guard is leading the response at the port alongside representatives from the Federal Highway Administration, the FBI, the Department of Transportation and the Army Corps of Engineers, as well as Maryland officials and Baltimore Police and Fire.
“It’s my intention that federal government will pay for the entire cost of reconstructing that bridge,” he says. “I expect the Congress to support my effort. It’s going to take some time. The people of Baltimore can count on us so to stick with them at every step of the way till the port is reopened and the bridge is rebuilt.”
Biden says he wants the federal government to pay to rebuild bridge.
“Everything so far indicates that this was a terrible accident. At this time we have no other indication,” Biden says.
Bloomberg Terminal subscribers can watch President Biden’s remarks on {LIVE <GO>}. The White House YouTube channel is also carrying the event here.
The bridge collapse could impact gasoline availability in Baltimore. Virtually all gasoline arriving there by pipeline is blended with ethanol that comes by barge from the Philadelphia and New York Harbor areas, said Andy Lipow, president of Lipow Oil Associates in Houston.
Consultancy Energy Aspects says in a note on Tuesday that some thermal coal shipments may be re-routed to other ports such as Norfolk, Virginia. It expects marine traffic on the affected coal terminals in Baltimore to be delayed by two to three weeks.
Flexport Inc. CEO Ryan Petersen tweets that the logistics startup has two containers on the Dali, and 330 more en route to the Port of Baltimore that will need to be rerouted. He says the company is notifying customers and working with insurance companies on the impact.
Sugar, soybeans, and grain products such as corn and wheat, as well as coffee, are among the top agricultural products handled at the Port of Baltimore, according to Mike Steenhoek, the executive director of the Soy Transportation Coalition.
The port handled more than 170,000 metric tons of soybean imports via container in 2020, Steenhoek wrote, adding that while Baltimore “is not a significant port region for soybeans and grain, it obviously is a significant resource for the broader economy.”
Updated 1 day ago
American Sugar Refining Inc. said its Domino Sugar refinery in Baltimore has six to eight weeks of raw sugar supplies, with one ship currently unloading at the facility and another one that finished discharging on Monday, according to a statement to Bloomberg. As a result, the company doesn’t expect any short-term impact to operations.
“ASR Group also owns a network of production facilities and has warehouses across the US that all currently have healthy inventories of finished products and can be utilized if necessary,” the company said.
Updated 1 day ago
While the the bridge collapse will have a limited impact on the broader economy, it “is just another reminder of the vulnerability of the nation’s infrastructure and supply chains,” said Moody’s Analytics Chief Economist Mark Zandi.
The Dali was involved in an accident on July 11, 2016, when the vessel was leaving the Port of Antwerp in Belgium, according to a spokesperson of the Port of Antwerp-Bruges. The cargo ship hit the quay wall, without causing major damage, according to the same representative, who did not have further information about the cause of that accident.
As a standard procedure, the ship remained docked for few days in Deurganckdok, Belgium, while independent experts conducted an investigation into the cause of the accident and the vessel was repaired.
Updated 1 day ago
The NTSB briefing is now scheduled for 1 p.m. NY time.
Biden to Deliver Remarks on Bridge Collapse at 12:30pm ET
Britannia is a mutual owned by shipping companies that is itself backstopped by the International Group of P&IClubs. The International Group then purchases reinsurance to protect itself from huge payouts. It means that any payouts that the Dali triggers will strike at the heart of the global insurance and reinsurance industries.
The ship has protection and indemnity cover — which normally includes protections against collisions — from Britannia P&I Club.
“We are working closely with the ship manager and relevant authorities to establish the facts and to help ensure that this situation is dealt with quickly and professionally,” Britannia P&I said.
Updated 1 day ago
Tradepoint Atlantic, the former Sparrows Point steelmaking site that’s being developed into a massive logistics hub, called the disaster “an extremely challenging situation.” The 3,300-acre property, already home to warehouses owned by Amazon.com Inc. and Under Armour Inc., has been trying to sign more tenants interested in its access to deepwater berths, railways and highways. Tradepoint Atlantic, located directly on one side of the collapsed bridge, didn’t say in its statement how it expected to be affected.
“Tradepoint Atlantic has been in constant contact with emergency response officials and leaders from Baltimore City, Baltimore County, and the State of Maryland,” it said. “As part of the Port of Baltimore, we are committed to helping our state and local partners and the entire port community recover and rebuild from this tragedy.”
Here’s our 2019 story on the development, in which company officials estimated total private investment would reach $2 billion.
Lightweight concrete was used in the 1970s construction of Baltimore’s Francis Scott Key Bridge “to improve structural efficiency,” according to a November 2021 report by the US Federal Highway Administration. The report noted that “the material is not commonly used for bridge construction” but “can be used as a durable and cost-effective material for bridges.”
The report seems to give the material mixed reviews, listing “enhanced durability” as a “counterintuitive” benefit while citing “reduced durability” and “lack of familiarity of contractors with lightweight concrete” as “disadvantages.”
The Francis Scott Key Bridge in Baltimore. Photographer: William Sherman/Getty Images
More Trucks: The ATA sent us some updated statistics about truck traffic on the bridge:
“Nearly 4,900 trucks travel the bridge each day, with $28 billion in goods crossing every year.”
Impacts to fuel operations from the bridge collapse should be minimal, but there will be some small hiccups.
Fuel companies will have to rely heavily on the Colonial Pipeline to ship fuel to the area as the ports remain closed, Patrick De Haan, head of petroleum analysis at GasBuddy, said in a tweet. Colonial Pipeline is the largest refined products pipeline in the US, delivering fuel between the Gulf Coast and the East Coast.
Mansfield Energy projects delays for fuel deliveries spanning “several months,” analyst Cassia Paz wrote in a daily note. Fuel trucks will have to drive farther to deliver, meaning fewer deliveries can be made per day, she added.
This map shows the path of the cargo ship Dali before it hit the bridge.
Trucks: The bridge collapse will have “significant and long-lasting impacts on the region” as trucks are re-routed around the key artery, fueling delays and higher costs, a spokesperson for the American Trucking Associations said in a statement.
Roughly 3,600 commercial trucks traverse the bridge in an average day. Vehicles moving hazardous materials are prohibited from using the city’s tunnels and will now face detours of roughly 30 miles around Baltimore.
“This will add significant cost in time, fuel and delays for trucks traveling through the region, on top of the disruption that a closure of the Port of Baltimore will inflict on our economy,” the spokesperson said.
Updated 1 day ago
Here’s part of a statement from Joseph Harris, a spokesman for the Virginia Port Authority:
“Our operating team is already working with ocean carriers whose vessels were due to call Baltimore and offering the capability of our port to discharge cargoes as requested. The Port of Virginia has a significant amount of experience in handling surges of import and export cargo and is ready to provide whatever assistance we can to the team at the Port of Baltimore.”
Bloomberg economist Michael McDonough breaks down auto shipments that run through Baltimore:
From the US DOT:
“At the invitation of Gov Moore, Secretary Buttigieg will travel to the site of the Baltimore Francis Scott Key Bridge collapse today to receive updates.”
John Lawler, Ford Motor Co.’s chief financial officer, told Bloomberg TV that the closing of the large port would have an impact, but the automaker will “work on the workarounds.”
The accident brings to mind how quickly I-95 in Pennsylvania reopened after a bridge collapse there last year. Different circumstances, obviously, but here’s how they pulled off that "small miracle," as described by Bloomberg News.
Workers inspect and clear debris from a section of the bridge that collapsed on I-95 on June 15, 2023. Photographer: Hannah Beier/Bloomberg
Briefing scheduled:
From the White House:
“This morning, the President convened senior members of his team for a briefing on the ongoing response to the collapse of the Francis Scott Key Bridge in Baltimore, Maryland. During the briefing, the President directed his team to ensure all federal resources be made available to assist in the ongoing search and rescue efforts and response to this incident. The President will continue to receive updates from his team throughout the day. White House and Administration officials will remain in close contact with state and local officials.”
Maersk said it’s omitting Baltimore on all of its services “for the foreseeable future, until it is deemed safe for passage through this area.” Customers are set to face delays as cargo set for Baltimore is discharged in nearby ports, the Danish company said in a customer advisory posted on its website. “We are keeping a close eye on the safety situation in the area and continuing to assess the viability of transportation through the area,” Maersk said.
Rebuilding the Francis Scott Key Bridge is likely to cost “several billion dollars,” according to Yonah Freemark, a researcher at the Urban Institute. The bridge, which is maintained by the Maryland Transportation Authority, is more than one mile (1.6 kilometers) long. Freemark pointed to the Brent Spence Bridge project, which connects parts of Kentucky and Ohio, to give perspective of the amount of construction needed. That project is expected to cost around $3.6 billion and is roughly one-fifth the length of the Key bridge.
Maersk Says It Will Reroute Cargo Directed for Baltimore
Updated 1 day ago
President Joe Biden is expected to speak about the bridge collapse before departing for a trip to North Carolina Tuesday afternoon, and will visit the disaster area in coming days, according to a person familiar with internal White House discussions. The administration is also looking at ways to unlock funding for the recovery effort and examining the possible use of funds from the president’s signature infrastructure bill, the person said. A White House spokesman didn’t immediately respond to a request for comment.
More on the potential economic impact: Stephen Stanley, chief economist at Santander US Capital Markets LLC, reckons the option of diverting trade to alternative ports will lessen any inflationary impact -- but the bigger impact will come from traffic disruption.
“The more persistent economic impact will be the disruption to traffic around the Baltimore area for the extended period until the bridge can be rebuilt,” Stanley said. “Depending on the arrangements that are made with regards to trucks travelling I-95, that could create issues up and down the East Coast for the delivery of goods as well as for local residents trying to get to work.”
Automakers have begun diverting shipments to avoid the Port of Baltimore, which is a major handler of car and truck imports. Ford CFO John Lawler said in a Bloomberg Television interview that the company is rerouting auto parts to other East Coast ports, adding that the situation will “lengthen the supply chain a bit.” Similarly, rival General Motors said in a statement that it’s “working to reroute any vehicle shipments to other ports.” The company expects “minimal impact” to its operations.
Traversing Maryland will be a nightmare. A trip from Edgemere heading south to Glen Burnie was 15.1 miles over the Francis Scott Key Bridge before it collapsed, according to Google maps. Via the Baltimore Harbor Tunnel, it’s 19.9 miles. For travelers with certain hazardous materials barred from the tunnel, state officials say they should take the western portion of the Baltimore Beltway. That’s 44.8 miles.
The economic fallout from the the bridge collapse would appear to be manageable given the option of diverting trade to ports at Norfolk, New York and others, according to Gregory Daco, chief economist at EY.
“I would anticipate the macroeconomic consequences to be limited,” Daco said. “To be sure, with supply conditions still strained and global trade freight constrained by the Red Sea diversion and Panama Canal drought this is another issue to monitor closely.”
The bridge collapse could stop coal shipments out of Baltimore for four to six weeks, which would block the export of up to 2.5 million tons of the commodity, said Ernie Thrasher, chief executive officer of Xcoal Energy & Resources LLC, a Pennsylvania coal trader that works with several suppliers. “You’ll see some diversion to other ports but the other ports are pretty busy, so there’s a limit on how much you can divert,” he said.
Baltimore exports about 20 million tons of coal per year, with a large portion going to India, Thrasher said. “The Indian buyers will be most affected,” he said. Thrasher also said Baltimore ships under 2% of the global seaborne coal market so there will be minimal impact on global coal prices, with the possible exception of India.
Bloomberg’s Kevin Whitelaw on the implications of the crash:
Bloomberg’s Justin Sink also has additional details from Governor Moore about the bridge, while search-and-rescue operations still ongoing:
“Moore was unable to provide a timeline on how long it would take before ships could enter or exit Baltimore’s port, and said the current focus of officials was the search and rescue efforts. He also said he did not know how long it would take to rebuild the bridge, which is used by an average of 35,000 people a day, but that Maryland was currently diverting drivers to nearby tunnels.”
Ford CFO John Lawler was on BTV moments ago:
Ford CFO Says Baltimore Bridge Collapse to Affect Supply Chain
Ford Looking to Reroute Car Parts to Other East Coast Ports
Bloomberg White House reporter Justin Sink relays this accounting of workers on the bridge from Maryland Governor Wes Moore:
“Of the eight construction workers on the bridge at the time of the collapse, one has been hospitalized, another has been in contact with authorities but is not in the hospital, and six remain missing, Moore said. Moore was not able to say if any vehicles were on the bridge at the time of the collapse or were presumed missing.”
Updated 1 day ago
Moore says that between when the ship issued the mayday signal and the collapse, authorities on the bridge were able to stop the flow of new vehicles onto the bridge, which “saved lives.”
Moore said that the ship was headed toward the bridge at eight knots, which he described as a “rapid speed.”
“We can confirm that the crew notified authorities of a power issue,” he said.
Updated 1 day ago
Maryland Governor Wes Moore said there is no timeline for when shipping will resume out of the port.
“We don’t have any estimates on timeline because right now our exclusive focus is on saving lives,” he told reporters at a press conference.
The Biden Administration is examining how it can quickly release emergency release funds for clearing and rebuilding the bridge, said Senator Chris Van Hollen, a Maryland Democrat. The Army Corps of Engineers has deployed naval assets for the search-and-rescue operation and the National Transportation Safety Board and National Highway Transportation Administration are also expected to assist in the investigation and response, Van Hollen said.
Construction workers who were on the bridge at the time of the collapse were addressing potholes and not structural issues, Maryland Transportation Secretary Paul Wiedefeld told reporters. Engineers from the state transportation office are examining the debris field and structural issues, but don’t plan to act until they’ve consulted with federal partners, Wiedefeld -- who previously ran the Washington, DC area transit authority -- said Tuesday.
The preliminary investigation of the collapsed Francis Scott Key Bridge in Baltimore points to an accident and officials haven’t seen any credible evidence of a terrorist attack, Maryland Governor Wes Moore tells reporters.
Updated 1 day ago
Baltimore Mayor Brandon Scott follows governor’s state-of-emergency declaration with one of his own in an X post.
From the governor’s remarks:
Will Update Public as Work Continues Following Collapse
Preliminary Investigation Points to An Accident
Maryland Governor Wes Moore said at a briefing that the preliminary investigation points to an accident.
Updated 1 day ago
Maryland Governor Wes Moore has begun making a statement to the press. Bloomberg Terminal subscribers can follow along at {LIVE <GO>}.
One of several container-ship terminals at Baltimore will stop accepting deliveries for export later in the morning.
Due to the current port circumstances, Seagirt Marine Terminal will stop receiving exports today, March 26th, at 11:00 AM until further notice.
We’re watching market reaction from shipping companies this morning. A Maersk dollar bond is among Tuesday morning’s leading high-grade decliners following the collapse. The spread on the company’s 5.875% note due 2033 widened 13 basis points to 142bps, according to Trace.
Updated 1 day ago
Potential losses arising from the destruction of the Francis Scott Key bridge could be costly if disruption to the port of Baltimore triggers business-interruption claims, Bloomberg Intelligence insurance analyst Charles Graham says.
Determining who pays those claims will rest on whether the accident was caused by negligence or mechanical failure. Given the multiple parties involved, settlement of any claims is likely to be complex, Graham writes in a first look at the potential liabilities.
Vehicles carrying certain hazardous materials that would otherwise use the collapsed bridge are being diverted all the way around the western portion of the Baltimore Beltway, because they aren’t allowed in harbor tunnels, according to a Facebook post by the Maryland Transportation Authority.
Updated 1 day ago
MAERSK: A Maersk dollar bond is among Tuesday morning’s leading high-grade decliners after a container ship it chartered struck Baltimore’s Francis Scott Key Bridge, writes Bloomberg’s Alicia Clanton.
Shares in coal miner and exporter Consol Energy dropped as much as 7.35% in pre-market trading in New York in the wake of the collapse. Consol’s Baltimore Marine Terminal is used to load coal into large ocean-going ships in the area.
Updated 1 day ago
The Federal Highway Administration has allocated $61 billion from the Bipartisan Infrastructure Law to support critical projects, including roads, bridges and tunnels for the 2024 fiscal year. As part of that program, $88 million was allocated to Maryland as part of the bridge replacement, rehabilitation, preservation, protection, and construction program, according to the Department of Transportation’s website.
Cove Point LNG spokeswoman Samantha Norris confirmed that there are no operational impacts at the liquefied natural gas export facility in Lusby, Maryland.
Bloomberg’s Jack Wittels reports that at least 21 vessels are in the waters west of the collapsed span.
Updated 1 day ago
“There are no indications this was an intentional act,” US Homeland Security Secretary Alejandro Mayorkas said in a post on X.
Updated 1 day ago
Chesapeake Bay was the site of another shipping mishap just two years ago, when a 1,095-foot (334-meter) container vessel called the Ever Forward ran aground in March 2022 shortly after leaving Baltimore. It was dislodged a month later.
Other recent incidents involving freighters have also generated global headlines. Last year, a ship carrying almost 3,000 cars caught fire in the North Sea, killing one crew member and injuring others. In March 2021, a container vessel called the Ever Given got stuck in the Suez Canal and blocked traffic in the highly transited waterway for almost a week.
This just in from Volkswagen, which received, processed and shipped around 100,000 vehicles last year through Baltimore for its dealers in the Northeast and Mid-Atlantic regions of the US:
The carmaker says in an emailed statement that its port operations aren’t affected because its Baltimore facility is located along the seaboard adjacent to the bridge, as opposed to inland
While the company doesn’t anticipate any impact on vessel operations, there may be trucking delays as traffic will be rerouted in the area
Bloomberg data showing the route of the ship that hit the bridge shows that the Singapore-flagged Dali had gone under the New York City area’s Verrazzano-Narrows and Bayonne bridges on March 19.
Updated 1 day ago
While liquefied natural gas is one of the fuels exported from the region, LNG export flows are probably unaffected by the bridge collapse, because the Cove Point terminal is located in Lusby, Maryland, nearly 80 miles south of Baltimore. Two vessels carrying LNG have recently departed from Cove Point, according to shiptracking data on Tuesday compiled by Bloomberg.
US Homeland Security Secretary Alejandro Mayorkas said in a post on X that the Coast Guard is on the scene to assist local partners and is “actively involved” in the search-and-rescue mission
Updated 1 day ago
Emily Stausbøll, an analystat Oslo-based shipping-analytics company Xeneta, warns the collapse threatens to hamper global trade flows that are already under strain.
“Far East to US East Coast ocean freight services have already been impacted by drought in the Panama Canal and recent conflict in the Red Sea, which saw rates increase by 150%,” Stausbøll said in a statement. “This latest incident will add to those concerns.”
It’s likely other ports including New York/New Jersey and Virginia will handle additional cargo if Baltimore is inaccessible, which could limit the impact, Stausbøll said. But there’s only so much port capacity.
“The question is how quickly ocean freight carriers can put diversions in place, particularly for vessels already en route to Baltimore or containers at the port waiting to be exported,” she said.
Here’s some facts on the bridge, from the Maryland Transportation Authority:
The Francis Scott Key Bridge opened March 23, 1977, as the final link in the I-695 Baltimore Beltway that circles the city.
It’s 1.6 miles long, crossing the Patapsco River, where Francis Scott Key was inspired to write the words of the Star Spangled Banner when he witnessed the bombardment of Fort McHenry on the evening of Sept. 12, 1814.
It took about five years to build and cost of $60.3 million.
About 11.3 million vehicles cross it per year.
Updated 1 day ago
“We know that there were individuals working on the bridge,” Baltimore County Executive John Olszewski told CNN. “We’ve also identified with side-scanning sonar that there were cars on the decks.”
Sonar has detected vehicles in the river, CNN reported, citing Baltimore Fire Chief James Wallace.
ABC is reporting that the ship that struck the bridge “lost propulsion” as it was leaving port and warned Maryland officials of a possible collision. The network is citing an unclassified Cybersecurity and Infrastructure Security Agency report.
Updated 1 day ago
Here’s a view of shipping in the the area:
Map of ships that could be affected by the collapsed bridge. Terminal users can run {MAP <GO>} to view the full map.
Updated 1 day ago
The FAA is restricting drone flights near the bridge, the agency said in a post on X.
Updated 1 day ago
Search and rescue is the primary goal at this point in Baltimore. But as the financial impact becomes clearer, a big question will be around liability. Here are some initial thoughts from Stephane Kovatchev, a credit analyst with Bloomberg Intelligence:
“Maersk may not be directly responsible or liable for the tragic collapse of the Baltimore bridge, according to our preliminary analysis, as the Danish company had no crew on board and the ship was operated by a charter company. Maritime insurance will likely cover some of the costs, yet uncertainty around the total liabilities and who will pay for them will likely weigh on Maersk’s spreads in the near term.”
Updated 1 day ago
Supply Lines: The Port of Baltimore — the biggest handler of US imports and exports of cars and light trucks — looks to be out of commission indefinitely, writes Bloomberg’s Brendan Murray.
The resulting bottleneck could accelerate a shift of goods through West Coast ports. Another crucial question: Which other ports have spare capacity to handle the Ro-Ro vessels that carry automobiles if Baltimore is closed for an extended period.
President Biden has been briefed on the collapse of the bridge
He’ll get updates on the bridge throughout the day
OUR MAIN STORY: A major commuter bridge in Baltimore collapsed after being rammed by a container ship, plunging vehicles into the water and threatening chaos at one of the most important ports on the US East Coast.
The disaster at the Francis Scott Key Bridge occurred early Tuesday. It will cause huge disruption — both for shipping at one of the busiest ports on the US East Coast and on the roads — now that a key link has been severed on the major highway encircling Baltimore.
Welcome to TOPLive. A major commuter bridge in Baltimore collapsed after being rammed by a container ship, causing vehicles to plunge into the water and threatening chaos at one of the most important ports on the US East Coast.
Join us for live blog coverage of the incident starting at 8 a.m. New York time.
mechanical failure. Given the multiple parties involved, settlement of any claims is likely to be complex, Graham writes in a first look at the potential liabilities.
Vehicles carrying certain hazardous materials that would otherwise use the collapsed bridge are being diverted all the way around the western portion of the Baltimore Beltway, because they aren’t allowed in harbor tunnels, according to a Facebook post by the Maryland Transportation Authority.
Updated 1 day ago
MAERSK: A Maersk dollar bond is among Tuesday morning’s leading high-grade decliners after a container ship it chartered struck Baltimore’s Francis Scott Key Bridge, writes Bloomberg’s Alicia Clanton.
Shares in coal miner and exporter Consol Energy dropped as much as 7.35% in pre-market trading in New York in the wake of the collapse. Consol’s Baltimore Marine Terminal is used to load coal into large ocean-going ships in the area.
https://www.businessinsurance.com/article/20240327/NEWS06/912363507/Insured-losses-from-bridge-collapse-could-reach-$4-billion-Morningstar?utm_campaign=BI20240327DailyBriefing&utm_medium=email&utm_source=ActiveCampaign&vgo_ee=%2Ble6Uru0dQPYZx0LfR722dPYctHijddHepRslOU%3D%3AXLwZqwJzDWgKAZKhfMvzVRFMVFTVfHCp
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