The closure of the Port of Baltimore in the US following the collapse of the Baltimore key bridge is expected to lead to shipment delays and higher shipping costs, according to the Foreign Buyers Association of the Philippines.
President Robert Young said the group expects an estimated $150 million worth of apparel exports to the US to be delayed, with cargo vessels stranded in the Francis Scott Key Bridge area in Baltimore.
“Our export shipments deliveries to the chain stores and end buyers will have a big delay,” Young said, noting that the estimated value of apparel shipments from the Philippines expected to be delayed includes those in cargo vessels still in transit.
The collapse of the Francis Scott Key Bridge occurred last Tuesday after a container ship hit one of the bridge’s pillars, prompting the closure of the Port of Baltimore. Young mentioned that it is unclear how long it will take for traffic passage to normalize, as the Port of Baltimore is the largest US port by volume.
Cargo ships coming from Southeast Asia, including the Philippines, are currently standing still around the port area. There is hope that the shipments can still catch up with the season trend of apparel, or else they may face order cancellations.
Economists have also weighed in on the situation, noting that the closure of the Port of Baltimore could affect the Philippines in terms of shipment delays and higher shipping costs. Port traffic in Baltimore may be diverted to nearby alternative ports in the East Coast, potentially leading to congestion or delays in international trade and supply chains.
The incident is expected to strain supply chains and scramble deliveries along the US East Coast, which may have effects on inflation of countries linked to this locale. The closure of the Port of Baltimore could also impact global supply chains for vehicles and parts, as well as exports of US coal to India and other countries around the world.
