Jakarta, CNBC Indonesia – The collapse of the Francis Scott Key bridge in Baltimore, United States (US) last Tuesday, is believed to have sent shock waves throughout Uncle Sam's economy and even globally. This is due to disruption of main delivery routes for certain goods in the near future.

“This is not (just) a disaster in Baltimore, not a disaster in Maryland. This is also a national economic disaster,” Maryland Governor Wes Moore said Sunday at an event State of the Union CNNquoted CNBC InternationalMonday (1/4/2024).

“This is going to impact farmers in Kentucky. This is going to impact car dealers in Ohio. This is going to impact restaurant owners in Tennessee,” he stressed.

This is not just what Moore said. Another US official, Transportation Secretary Pete Buttigieg, also thinks so.

“It is important not only for the people and workers of Baltimore, but also for our national supply chain to get the port back up and running as quickly as possible,” Buttigieg said at the Face the Nation event in CBS the same page is loaded.

The bridge collapsed after a giant cargo ship crashed into it. A total of two construction workers died, while four other people are still missing and are believed to have died.

It is worth knowing the area where the bridge connects to the Port of Baltimore, which is the busiest and most active port in the US. According to state data, the Port of Baltimore is vital, with 2023 data showing the area processed a record 1.1 million cargo containers.

The port also handled nearly 850,000 car and light truck shipments in 2023. That's more than any other port for 13 consecutive years.

A number of cargo ships have been diverted due to the closure which will be carried out for who knows how long. In several statements published by a number of media, repairs could take up to six months.

“This makes it the ninth busiest port in the US by US trade volume,” said Ryan Petersen, chief executive of supply chain logistics company Flexport.

“This port is the number one port for cars and agricultural equipment. So it's important to communities in rural North Carolina, Kansas and Iowa. It's important to the global economy,” said Baltimore Mayor Brandon Scott.

Previously, the US Small Business Administration (Small Business Administration) had announced that it would provide long-term, low-interest loans of up to US$2 million (Rp. 31.7 billion) for local small businesses in the Mid-Atlantic region affected by the bridge collapse. The US government also gave Maryland initial funding of US$60 million to clean up the rubble.

It was reported how President Joe Biden's federal government will also cover 90% of the costs of rebuilding the bridge. Several senators in the US parliament also plan to propose funding legislation for the bridge, covering the remaining 10%.

Logistics are increasingly disrupted

In a different report it is also stated how logistics is increasingly disrupted in the US. The world's largest container ship company, MSC, for example has terminated shipping contracts to a number of clients after the cargo was sent to alternative ports.

The sender will be responsible for moving the item to its final destination. This will potentially make them incur late costs.

“With the Port of Baltimore closing indefinitely, the decision places responsibility for cargo pickup at the diverted port and transportation to the final destination on the shipper,” he said in an email to clients.

“Travel to and from Baltimore is currently impossible and will not be possible again for several weeks or even months,” MSC added.

Previously, other logistics companies such as CMA CGM, COSCO and Evergreen did the same thing. They declared “force majeure”, a legal term that refers to the right to set aside contractual obligations when events beyond the control of either party occur.

MSC sent a list of 23 ships arriving at the diverted ports March 28-April 29. Eight ships were diverted to an unknown number of ports while 11 ships headed to the Port of New

[Gambas:Video CNBC]

(sef/sef)