By David Shepardson
NEW YORK (Reuters) -U.S. automakers Common Motors (NYSE:) and Ford (NYSE:) will reroute affected shipments after a bridge collapse within the U.S. shuttered the Port of Baltimore, however the firms mentioned on Tuesday the affect will probably be minimal.
“We anticipate the scenario to have minimal affect to our operations. We’re working to re-route any automobile shipments to different ports,” GM mentioned in an announcement.
The Port of Baltimore is the busiest U.S. port for automobile shipments, dealing with at the least 750,000 automobiles in 2023, based on information from the Maryland Port Administration. Motor automobiles and components accounted for 42% of all Baltimore port imports.
Ford Chief Monetary Officer John Lawler mentioned the bridge collapse, which occurred after a container ship smashed into the four-lane bridge early on Tuesday, will pressure the automaker to divert components to different ports and affect its provide chain.
“It should have an effect,” Lawler informed Bloomberg Information. “We’ll must divert components to different ports… It would in all probability lengthen the provision chain a bit.”
Ford informed Reuters in a separate assertion “the place workarounds are needed within the brief time period, our workforce has already secured transport alternate options.”
Trade officers mentioned it was too early to say what affect the accident could have on the auto sector.
“However there will definitely be a disruption,” mentioned John Bozella, CEO of the auto commerce group Alliance for Automotive Innovation. “Baltimore is the No. 1 car port within the U.S., and we’re in contact with federal officers to assist them perceive the dimensions of automotive operations there.”
Rescuers have pulled out two survivors, considered one of whom stays hospitalized, and have been trying to find extra within the Patapsco River after big spans of the 1.6-mile (2.57 km) Francis Scott Key Bridge crumpled into the water.
Breakwave Advisors managing companion John Kartsonas, a transport analyst and investor, mentioned Baltimore is a big port for imports of client items, vehicles and different imports.
“There are quite a lot of different areas that may choose up the slack just like the New York Harbor and all the best way right down to Savannah, Georgia,” he mentioned in an electronic mail. “It would take some time for the scenario to resolve and to start working usually once more, so undoubtedly there will probably be delays in deliveries of products.”
Different transportation firms reported no main affect.
“Whereas Baltimore is just not a major port for our North American operations, there will probably be some affect, totally on automobile exports,” Toyota (NYSE:) mentioned in an announcement. “Right now, we don’t anticipate a big disruption, however we’re evaluating the scenario intently to find out the long run affect and countermeasures.”
Volkswagen (ETR:) Group of America mentioned it was not impacted as a result of its Baltimore facility is positioned on the easterly sea board of the bridge collapse, whereas Nissan (OTC:) mentioned it didn’t anticipate important affect presently.
BMW (ETR:) mentioned the automobile docks are positioned on the ocean facet of the harbor, so there was no main affect anticipated because the bridge collapse won’t have an effect on ships. It added that land-side truck site visitors can be rerouted.
Mercedes mentioned the incident has had no affect on automobile exports or the corporate’s Tuscaloosa, Alabama, plant’s components provide, and it was monitoring the scenario. It mentioned it makes use of ports in Baltimore, in addition to in Georgia and South Carolina, for automobile imports.
Volvo (OTC:) Group, which makes vans, building tools and engines, mentioned it was wanting over its stock in its U.S. manufacturing services to see if and when there could possibly be a disturbance in worst-case situations, including it at present anticipated no big affect.
