Baltimore bridge collapse is newest container shipping disruption

Container shipping price hikes are poised to become an aftereffect of the late-March Baltimore Francis Scott Key Bridge collapse, according to Germany-based online logistics platform operator Container xChange.

In its April monthly container shipping market report, Container xChange says freight and logistics sector sources predict a "significant" rise in container shipping prices in the short term.

In addition to repositioning tied to the Baltimore port closure and ongoing constraints at two of the world’s busiest canals, freight industry sources point to a measurable rebound in freight volumes into the United States so far this year, Container xChange reports.

“This is expected to lead to increased congestion, additional logistical and operational complexities and short to midterm price increases,” it continues.

The company reports its Container Price Sentiment Index (xCPSI) unexpectedly surged from 26 to 61 points between March 18 and March 29. That end date is three days after a container ship collided with the Francis Scott Key Bridge, causing it to collapse and block traffic to and from much of the Port of Baltimore.

“This marked increase suggests the industry is anticipating container prices to increase in the coming weeks—while the suddenness of the index’s move highlights rising uncertainty in the market,” Container xChange says, noting such a price increase could range from $50 to $100 per 20 foot-equivalent unit (TEU).

“The sharp rise in sentiment could be linked to ongoing market volatility, the perceived emergency on the U.S. East Coast due to the Baltimore collision, and the resulting sustained pressure on the market,” Container xChange CEO Christian Roeloffs says.

“In the short term, the bridge collapse will lead to localized disruptions in container availability and transportation. The incident has also led to increased delivery times and fuel costs [that] could indirectly impact container prices and leasing rates in the coming times.”

In the meantime, some container ships already are being directed to a temporary alternate channel location established by the Port of Baltimore not far from the Francis Scott Key Bridge.

Perhaps providing better news for those commissioned to find available empty containers, Container xChange says port statistics indicate imports at the 10 largest ports in North America reveal a significant increase in container throughput compared to the previous year.

In the first two months of this year, inbound TEUs have increased year on year at the following six largest-volume container ports: Los Angeles (36.9 percent); New York/New Jersey (10.2 percent); Long Beach, California (26.4 percent); Savannah, Georgia (10.9 percent); Houston (9.3 percent); and Vancouver (22.3 percent).

“Now with [Port of Baltimore] diversions, it remains to be seen how well [other] ports will handle the rise in traffic," Container xChange says. "As more cargo gets diverted to these ports, we will see an increased throughput pressure on these ports. This could lead to higher congestion and longer wait times for vessels, trucks and trains at the port.”

“As we move forward, we anticipate increased wait times and processing fees at the ports where traffic is diverted in the U.S.," Roeloffs adds. "The most striking impact, nonetheless, is on the regional supply chain in Baltimore, where the effects on life, the economy and businesses are severe.”