Baltimore Bridge Accident Having Minimal Economic Effect Locally

Supply chain experts say the bridge collapse that closed the Port of Baltimore last month likely will not have a major impact on Midwestern manufacturers, even though it could be the end of May before the port reopens. Frank Montabon, a professor of supply chain management at Iowa State University, says farmers buying equipment could see cost increases related to the collapse, but the average consumer likely won’t, as firms adjust their supply chains.

Henrik Sternberg, also an ISU professor of supply chain management, says domestic impact from the collapse will be small, but overseas may be a different story.

The Maryland port moved nearly $81 billion in foreign-bound cargo last year, part of which came from major ag equipment manufacturers like CNH Industrial and John Deere. Replacing the bridge may cost $400 million and take several years.


Back to top button