Will Baltimore bridge collapse hit global supply chains?

At least six people were killed after a ship struck a bridge in Baltimore. Supply chains from cars to coal have been disrupted. Countries around the world, including Germany, are now examining their own infrastructure.

In the early hours of March 26, the Singapore-flagged ship Dali, loaded with 5,000 containers, slammed into Baltimore's Francis Scott Key Bridge, causing the 1.6-mile (2.5-kilometer) bridge to collapse in a matter of seconds. The Dali was departing for Colombo when the disaster struck. Initial fears were confirmed  that half a dozen people lost their lives in the accident.

Baltimore's port had to be shut down, leaving millions of tons of coal, hundreds of cars, and deliveries of lumber and gypsum stranded. About 40 ships were ready to depart on Tuesday, and a big number of ships coming from the Atlantic cannot dock "until further notice," as the port's authorities said.

Financial markets reacted quickly to the bridge collapse, with shares of global shipping line Maersk plummeting 2.6% in Copenhagen on Wednesday.

But, an analyst from online broker Nordnet told the news agency Reuters, in the long run, "this event is not a major catalyst for stock prices, unless something unpleasant comes up, like indications of gross negligence behind the accident."

Gregory Daco, the chief economist at EY, also remains calm. "I think the macroeconomic effects will remain limited," he told Bloomberg News on Wednesday.

US Transportation Secretary Pete Buttigieg warned of a "major and protracted impact to supply chains" following the closure of the Port of Baltimore. "It's too soon to offer estimates on what it will take to clear the channel and reopen the port," he told reporters during a briefing in Baltimore on Tuesday.

Buttigieg referred to the bridge as one of the "cathedrals of American infrastructure," stressing that rebuilding it will take time. "The path to normalcy will not be easy," he said. "It will not be quick, it will not be inexpensive, but we will rebuild together."

US President Joe Biden called the collapse a "terrible accident," and pledged to get the port reopened and the bridge rebuilt. "I intend for the federal government to cover the entire cost of rebuilding this bridge," Biden said in Washington.

Costs for rebuilding the bridge are estimated at $500 million to $1.2 billion (€462 million-€1.1 billion), with at least two years of construction time.

The Port of Baltimore is particularly important for importing and exporting automobiles and light trucks. Approximately 850,000 vehicles are shipped there annually, supporting around 15,000 jobs. Additionally, the Francis Scott Key Bridge is a crucial artery on the East Coast, with approximately 30,000 vehicles crossing the bridge every day.