Legit.ng on Nostr: What is the economic impact of the Baltimore bridge collapse? ========== The collapse ...
What is the economic impact of the Baltimore bridge collapse?
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The collapse of the Francis Scott Key Bridge in Baltimore has led to diverted cargo and supply chain disruptions. The Port of Baltimore, the biggest vehicle-handling port in the country, has been suspended since the accident. Transportation Secretary Pete Buttigieg stated that ocean shippers, other ports, and cargo owners are working to divert ships that were headed to Baltimore. Maryland Governor Wes Moore warned that over 140,000 people could be indirectly impacted by the disruptions. Cargo bound for Baltimore will likely be partially diverted to the Port of New York and New Jersey, which has the capacity to handle the increased volume. While there will be noticeable headaches and supply chain disruptions, economists expect businesses to be able to adapt and do not anticipate a broad-based impact on US inflation or GDP. Certain sectors, such as automobiles, may be more impacted than others. The Baltimore port handled over 840,000 autos and light trucks in 2023, the most among US ports. Companies relying on timely deliveries, like the automotive industry, may experience inventory shortages. Alternative routes could also lead to higher transportation costs. Major automakers like Mazda and Stellantis are assessing the potential impacts and considering contingency plans to ensure an uninterrupted flow of vehicles to customers. However, economists believe that broad-based shortages in the autos sector are unlikely due to weaker demand for new vehicles and higher inventories. The issues are expected to be more isolated to companies that heavily rely on the Port of Baltimore for their inventory.
#Baltimore #BridgeCollapse #EconomicImpact #PortOfBaltimore #SupplyChainDisruptions #DivertedCargo #PortOfNewYorkAndNewJersey #Automobiles #InventoryShortages
https://www.legit.ng/business-economy/economy/1585553-what-economic-impact-baltimore-bridge-collapse/
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The collapse of the Francis Scott Key Bridge in Baltimore has led to diverted cargo and supply chain disruptions. The Port of Baltimore, the biggest vehicle-handling port in the country, has been suspended since the accident. Transportation Secretary Pete Buttigieg stated that ocean shippers, other ports, and cargo owners are working to divert ships that were headed to Baltimore. Maryland Governor Wes Moore warned that over 140,000 people could be indirectly impacted by the disruptions. Cargo bound for Baltimore will likely be partially diverted to the Port of New York and New Jersey, which has the capacity to handle the increased volume. While there will be noticeable headaches and supply chain disruptions, economists expect businesses to be able to adapt and do not anticipate a broad-based impact on US inflation or GDP. Certain sectors, such as automobiles, may be more impacted than others. The Baltimore port handled over 840,000 autos and light trucks in 2023, the most among US ports. Companies relying on timely deliveries, like the automotive industry, may experience inventory shortages. Alternative routes could also lead to higher transportation costs. Major automakers like Mazda and Stellantis are assessing the potential impacts and considering contingency plans to ensure an uninterrupted flow of vehicles to customers. However, economists believe that broad-based shortages in the autos sector are unlikely due to weaker demand for new vehicles and higher inventories. The issues are expected to be more isolated to companies that heavily rely on the Port of Baltimore for their inventory.
#Baltimore #BridgeCollapse #EconomicImpact #PortOfBaltimore #SupplyChainDisruptions #DivertedCargo #PortOfNewYorkAndNewJersey #Automobiles #InventoryShortages
https://www.legit.ng/business-economy/economy/1585553-what-economic-impact-baltimore-bridge-collapse/