The lengthy disruption at the Port of Baltimore, one of the busiest ports on the US East Coasts, will unleash supply chain snarls and resulting financial pressures for the local economy of Baltimore, Maryland, as it's only a matter of time before companies with direct and indirect exposure of the port fire workers.
"I have 2,400 ILA members who are soon going to be without jobs," Scott Cowan, president of the labor union's Baltimore local, said in an interview Wednesday, as quoted by Bloomberg.
Cowan said, "Getting them on the payroll, and keeping their families fed, putting food on the table is my first and foremost thought on my mind."
On Wednesday, Pete Buttigieg, the US transportation secretary, said it was "too soon to be certain" how long it would take salvage crews to remove the mangled Francis Scott Key Bridge from the shipping channel after a container ship rammed it on Tuesday. The bridge collapsed into the only shipping channel entering and exiting the harbor.
"Rebuilding will not be quick or easy or cheap, but we will get it done," Buttigieg said, adding the economic impact of the port shutdown would "ripple out" beyond the Baltimore metro area.
"This is an important port for both imports and exports. No matter how quickly the channels can be reopened, we know that it can't happen overnight. And so we're going to have to manage the impacts," he said.
On Thursday, Mediterranean Shipping Company, operator of the world's largest container ship fleet, warned customers it could be "several months" before port operations are completely restored.
Cowan said since dock workers are based on what's needed at the port, an extended port closure will result in job loss and ripple through the local economy. He said the federal government has discussed with ILA and the port director how to assist if there's no work.
"These longshore workers, if goods aren't moving, they're not working," Buttigieg said.
Can longshore workers expect stimmy checks? That could be a likely solution in an election year.
Meanwhile, federal officials told Maryland lawmakers in Annapolis that replacing the bridge and salvage work could exceed $2 billion.
JUST IN: Baltimore port worker claims the Dali cargo ship had a "severe electrical problem" just days before it crashed into the Francis Scott Key Bridge.
— Collin Rugg (@CollinRugg) March 27, 2024
Container Royalty co-administrator Julie Mitchell said the ship was having issues 48 hours before the crash.
"Those two… pic.twitter.com/7RccwEz7QU
According to Lloyd's of London Chief Executive Officer John Neal, insurance payouts are expected to be the highest ever recorded for marine insurance.
Jim Monkmeyer, president of transportation at DHL Supply Chain, said there are some indications that the port could reopen in May. However, it could be 3-5 years before a new bridge is constructed, which only suggests local supply chains will be disrupted for years.
We have detailed emerging supply chain disruptions:
- Baltimore Bridge Collapse May Cost Billions, Dramatically Disrupt Supply Chains
- Baltimore Coal Exports Blocked After Bridge Collapse
Some bridge engineers who spoke with the New York Times questioned why the 1.6-mile-long bridge had zero deflection safety systems to protect from ship strikes.
Why is that? Why did state and government officials neglect the safety of a bridge that spanned the only port exit and entry? Were they too busy focusing on woke policies?
