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Francis Scott Key Bridge Collapse 

March 26, 2024

Contents

• Situation Overview
• Potential Supply Chain Impacts

Situation Overview

• On Tuesday, March 26, the Francis Scott Key (FSK) Bridge in Baltimore, Maryland collapsed due to a container ship, the Dali, colliding with one of the bridge’s support structures.
• Governor Wes Moore declared a State of Emergency in Maryland and Baltimore Mayor Brandon Scott declared a local state of emergency. Baltimore authorities are characterizing the situation as a mass casualty event with multiple individuals submerged in the water. Priority is placed on search and rescue operations by the relevant authorities.

Potential Supply Chain Impacts

• The FSK Bridge is an integral part of the I-695 expressway and serves as a crucial component of the broader I-95 infrastructure, accommodating an annual traffic volume of 11.3 million vehicles. Daily traffic projections indicate approximately 31,000 vehicles utilize the bridge, with roughly a quarter of this volume attributed to commercial trucks, thus establishing it as a significant trucking thoroughfare. Notably, it served as the sole conduit for transporting compressed gases and other combustible materials.
• The primary alternative routes include the Habor Tunnel (I-895), Ft. McHenry Tunnel (I-95), and the western section of I-695, which is a longer trip around the tunnels.
  • However, vehicles transporting hazardous materials are currently prohibited from using the tunnels so they would need to take the longer route on the western section of I-695.
  • Providing guidance to utilize either tunnel would still pose a challenge for accommodating compressed gas trucks due to their size limitations, in addition to addressing various safety concerns associated with transporting hazardous materials through tunnel routes.
• Reconstruction of the FSK Bridge could take around two years. Given the considerable volume of commuter and commuter truck traffic reliant on this route, expedited reconstruction is imperative. However, the necessity for swift completion will contribute to the significant cost implications associated with this project.
• The Maryland Port Administration released a statement that vessel traffic into and out of the Port of Baltimore will be suspended until further notice.
• The Port of Baltimore, while modest in size compared to other container ports along the eastern seaboard, possesses the flexibility to likely redistribute containers to larger facilities, such as the Ports of New York and New Jersey, as well as the Norfolk Port, as circumstances necessitate.
  • From a container supply chain perspective, the bridge collapse impacts may not be as severe. The Port of Baltimore handled 265,000 containers in Q4 last year while the Port of New York and New Jersey handled roughly 2 million containers within the same period.
  • This will need to be monitored as recovery and restoration takes place because there is only so much port capacity available at the alternative eastern ports. Especially since the Port of New York and New Jersey had the highest utilization level on the east coast at 75% last year.
  • The Port of Virginia is already working with shipping companies to offer the capability of discharging cargo as requested. They have experience in handling surges of import and export cargo.
• The FSK Bridge presents an additional complication amidst the ongoing global shipping crisis. With disruptions in shipping lead times already stemming from the conflicts in the Red Sea, Suez Canal, and Panama Canal, the proximity of this bridge collapse has the potential to further escalate challenges. Maersk, a prominent container shipping company, has announced their intention to avoid the Port of Baltimore for the foreseeable future.
• There is uncertainty surrounding which ports possess sufficient capacity to accommodate rerouted ships. This situation may have repercussions on the healthcare supply chain, contingent on the manner and types of goods being redirected.
• Rerouting will impact regional traffic, as well as larger shipping companies including, Amazon, FedEx, and others, having potential impacts to healthcare supply chain.

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