- Dec 18, 2012
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Maersk says it chartered ship that rammed into Baltimore bridge (OTCMKTS:AMKBY)
Seeking Alpha: Supply Chain
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"Many are still trying to make sense of the disaster that struck Baltimore early on Tuesday, when the 1.6-mile-long Francis Scott Key Bridge collapsed in the middle of the night. The 95,000-ton container ship Dali, chartered by Maersk (OTCPK:AMKBY), collided with one of the support columns following a last-minute distress call, sending eight workers atop the bridge into the water (two were rescued and six are presumed dead). Responding to the catastrophe, President Biden has called for the federal government to pick up the tab for the reconstruction of the Key Bridge, though that could take years and will require Congressional approval.
What happened? An investigation is ongoing, but videos show the cargo ship's lights turning off - and then on again - shortly before it struck the bridge. Power to the Dali was said to have gone out shortly after it left the Port of Baltimore, including to the ship's engines, possibly due to a failure of machinery aboard the vessel (black smoke?). While emergency generators eventually kicked the lights on, the renewed power likely didn't impact the ship's propulsion or steering gear. An inspection in Chile last June even identified a problem with the Dali's "propulsion and auxiliary machinery," but the most recent examination conducted by the U.S. Coast Guard in September didn't find any deficiencies.
The supply chain is the most talked-about consequence for the economy, with shipping traffic suspended until further notice. Baltimore is one of the busiest ports on the U.S. East Coast, and the rerouting of cargo will create delays and raise costs at a time when consumers and policymakers alike are sensitive to inflation. It will also add to the recent disruptions on the high seas, including increased congestion in the Panama Canal and attacks in the Red Sea that have forced traffic around the tip of Africa.
Immediate impacts: Coal exporter Consol Energy (CEIX) slid 7% yesterday in response to the indefinite shuttering of the Port of Baltimore. The company's operations are said to be highly connected to its Marine Terminal at the port, which represents over a quarter of all U.S. seaborne coal exports. Recent data also indicates that 850K cars and light trucks pass through Baltimore each year, more than at any other U.S. port, prompting Ford (F) and General Motors (GM) to comment on the possible impacts facing the American auto industry."
Seeking Alpha: Supply Chain
(must create free account)
"Many are still trying to make sense of the disaster that struck Baltimore early on Tuesday, when the 1.6-mile-long Francis Scott Key Bridge collapsed in the middle of the night. The 95,000-ton container ship Dali, chartered by Maersk (OTCPK:AMKBY), collided with one of the support columns following a last-minute distress call, sending eight workers atop the bridge into the water (two were rescued and six are presumed dead). Responding to the catastrophe, President Biden has called for the federal government to pick up the tab for the reconstruction of the Key Bridge, though that could take years and will require Congressional approval.
What happened? An investigation is ongoing, but videos show the cargo ship's lights turning off - and then on again - shortly before it struck the bridge. Power to the Dali was said to have gone out shortly after it left the Port of Baltimore, including to the ship's engines, possibly due to a failure of machinery aboard the vessel (black smoke?). While emergency generators eventually kicked the lights on, the renewed power likely didn't impact the ship's propulsion or steering gear. An inspection in Chile last June even identified a problem with the Dali's "propulsion and auxiliary machinery," but the most recent examination conducted by the U.S. Coast Guard in September didn't find any deficiencies.
The supply chain is the most talked-about consequence for the economy, with shipping traffic suspended until further notice. Baltimore is one of the busiest ports on the U.S. East Coast, and the rerouting of cargo will create delays and raise costs at a time when consumers and policymakers alike are sensitive to inflation. It will also add to the recent disruptions on the high seas, including increased congestion in the Panama Canal and attacks in the Red Sea that have forced traffic around the tip of Africa.
Immediate impacts: Coal exporter Consol Energy (CEIX) slid 7% yesterday in response to the indefinite shuttering of the Port of Baltimore. The company's operations are said to be highly connected to its Marine Terminal at the port, which represents over a quarter of all U.S. seaborne coal exports. Recent data also indicates that 850K cars and light trucks pass through Baltimore each year, more than at any other U.S. port, prompting Ford (F) and General Motors (GM) to comment on the possible impacts facing the American auto industry."
