“While the full extent of the impact is yet to be determined, the collision is likely to have far-reaching consequences for the Port of Baltimore and its role in the regional and national economy.”
Why this is important: Sometimes a tragic event in a single location can magnify issues facing the construction industry more than even the accumulation of issues across the country. Unfortunately, the March 26, 2024, collapse of the Francis Scott Key Bridge in the Port of Baltimore did that in more ways than one. In addition to raising issues related to bridge construction and design to prevent future loss of life caused by a barge striking a bridge, such as adding larger or more “dolphins” (i.e., circular concrete constructions that are located near the central supports of a bridge), the Francis Scott Key Bridge collapse also pinpoints supply chain vulnerabilities, especially for cargo located at or destined for the Port of Baltimore. This article reports that between 30-40 container vessels unloaded approximately 21,000 containers each week. In relation to the construction industry, the Port of Baltimore is a key hub for steel and aluminum imports/exports. As a result of the March 26 tragedy, these vessels and containers will have to be diverted to other ports, which in turn disrupts schedules and increases the labor burden at other ports where the diverted cargo must be unloaded and processed. It is expected that it could take months to absorb and process the diverted materials in other ports, such as those in Norfolk and Philadelphia. As noted by Christian Roeloffs, co-founder and CEO of Container xChange, the Frances Scott Key Bridge collapse “highlights the importance of contingency planning, diversified routing options, and the integration of real-time tracking and analytics to mitigate the impacts of unforeseen events . . , [and] serves as a reminder that infrastructure vulnerabilities can lead to disruptions, and being prepared with flexible, adaptive strategies is essential for maintaining continuity in the face of challenges.” If you suspect or are aware of supply chain disruptions on your projects caused by the Baltimore bridge collapse, and want to understand your contractual options and/or remedies, contact the Spilman Construction Practice Group to analyze your contract documents and provide counsel on how best to mitigate the impacts. --- Stephanie U. Eaton