How the Baltimore bridge collapse could impact East Tennessee
Vessel traffic in the port of Baltimore has stopped ever since a cargo ship lost power and crashed into the Francis Scott Key Bridge in Maryland on Tuesday, and the ripple effect of losing a major … The Baltimore bridge collapse, which occurred on Tuesday, could impact East Tennessee, where there is significant freight moving through the port of Baltimore. The impact could include importers and manufacturers in Tennessee who have freight that would move through Baltimore. Kit Johnson, Director of Trade Compliance at John S. James Company, said that 40 to 50 percent of the freight moving in Baltimore was automotive related, potentially impacting companies like VW or Nissan in Tennessee. Manufacturing companies could see the most impact, with parts or plants needing to shut down potentially costing millions of dollars. While the collapse is causing logistical challenges, Johnson believes it is unlikely to trigger a major U.S. supply chain crisis.
게시됨 : 4주 전 ~에 의해 Naomi Hillmer ~에
KNOXVILLE, Tenn. (WATE) — Vessel traffic in the port of Baltimore has stopped ever since a cargo ship lost power and crashed into the Francis Scott Key Bridge in Maryland on Tuesday, and the ripple effect of losing a major port may impact us in East Tennessee.
“There’s plenty of importers and manufacturers in Tennessee that would have freight that would move through Baltimore so there definitely is some impact to them,” said Kit Johnson, Director of Trade Compliance at John S. James Company.
John S. James Co. is a freight forwarder and broker company that works directly with logistics and transportation of cargo ships. According to Johnson, the bridge collapse could impact multiple industries.
“Definitely automotive and farm equipment. I think 40 to 50 percent of the freight that was moving through Baltimore is automotive related so you would look at companies like VW or Nissan potentially being impacted in Tennessee,” said Johnson. “But there was also a great amount of farm equipment that was coming through. Those are really the major impacts, but we have customers across all industries that have had impacts from this.”
While the collapse is causing logistical challenges, Johnson believes it’s unlikely to trigger a major U.S. supply chain crisis.
“I don’t think it is the most major disruption,” said Johnson, “for sure there is a lot of re-routing that has to be done which means there is going to be congestion potentially in other ports.”
Out of the freight in Baltimore, manufacturing companies could feel the most impact.
“You may have a container that has parts you need or you have to shut the plant down, which could potentially cost millions of dollars,” said Johnson.
He called the Baltimore bridge collapse a wake-up call for the industry.
“It highlights the importance of making sure that your supply chain is diversified,” he said. “Not only what ports you’re bringing things into, but also service providers to make sure that you don’t have a single point of failure.”
He also says this could cause congestion and delays across eastern ports.
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