[Freight Weekly] Francis Scott Key Bridge Collapse

⚠️Francis Scott Key Bridge collapses, impacting Maryland shipping⚠️

The world was shaken as the Francis Scott Key Bridge in Baltimore, Maryland, collapsed after the container vessel MV Dali collided with the superstructure. After conflicting reports and hysteria stoked by conspiracy theorists on all major social media platforms, especially X (formerly Twitter), U.S. and Maryland officials have indicated that the collision was due to power and propulsion errors. Here is what you need to know about the collision at the time of this Freight Weekly:

• MV Dali is a Singapore-flagged container vessel operated by the Synergy Group on behalf of Maersk. Grace Ocean Private Limited, which is based in Singapore, owns the actual vessel. There was an international crew of 22 aboard. Reports indicate the crew is safe.

• GCaptain and other news outlets have erroneously reported that Mitsui & Co. of Japan owns Grace Ocean. Mitsui released a press statement saying that the company has no connection to Grace Ocean Private.

• Dali was cited by Tokyo MOU for propulsion issues prior to Key Bridge.

• The Dali collision resulted in the loss of six construction workers. At the time of this newsletter, all six are believed to be dead. The remains of two of the construction workers have reportedly been recovered.

• Maryland Gov. Wes Moore has declared a state of emergency and said state authorities are working with regional and federal partners. The Maryland Transporation Authority has issued advisories to land transit flows to use alternate routes as the interstate highway built on the Key Bridge, I-695. International partners from Singapore are also on hand.

• The Port of Baltimore is indefinitely closed for ocean carriers until the Key Bridge crisis is resolved. State officials indicate that the port is still open for truck-based transactions as overall operations are stalled.

• Some reports indicate that the Port of Baltimore’s closure could cost the local and Maryland state economy several billions. The port directly supports over 15,000 jobs and indirectly 139,000 jobs in Maryland.

• The National Transportation Safety Board will help by leading the investigation. A unified command center and incident commander is established, featuring staff from Maryland law enforcement, Synergy Group, the United States Coast Guard, and other interagency teams.

• MV Dali was reportedly transiting “hazardous materials.” NTSB Chair Jennifer Homendy said that about 56 containers aboard contained corrosive materials, lithium-ion battery cells, and other materials.

Bottom line: Trade in the region will be bottlenecked, and Maryland will likely face economic challenges due to the indefinite closure of the Port of Baltimore.

CONTEXT: “Baltimore bridge collapse and port closure send companies scrambling to reroute cargo” via the Associated Press, March 26, 2024.

Quote of the Day: The “tentacles” of ocean-borne trade in Maryland

"It's not just the Port of Baltimore that has been compromised…It's also the railroads, the trucking industry, the regional-distribution centers, commuters, and other segments of the economy…The tentacles here are far-reaching…And they're all negative."

- Anirban Basu, CEO, Sage Policy Group, in an interview with Business Insider

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📰  WHAT ELSE IS GOING ON IN FREIGHT

🛟East Mediterranean cargo hubs suffering from Red Sea crisis: Due to the ongoing series of Houthi-backed attacks on commercial shipping in the Red Sea and Gulf of Aden, ports in the East Mediterranean Sea are feeling the heat.

🙅🏽‍♀️Yellow’s lawsuit against Teamsters dismissed by federal court: The suit filed by the failed LTL carrier Yellow against the Teamsters union for breach of contract was dropped by a federal district judge in the state of Kansas.

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