Baltimore bridge collapse sparks concerns over Philippine import price surge

The collapse of a major bridge in Baltimore, United States may lead to an increase in import prices for the Philippines, an economist warned.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that the port congestion triggered by the bridge collapse in the US could disrupt global supply chains, impacting the flow of exports and imports.

“[The Baltimore bridge collapse] could potentially have an indirect impact on Philippine external trade, both exports and imports as well, especially in terms of delays and some increase in shipping costs that could lead to some increase in import prices,” Ricafort said in an e-mail message.

He also cited the disruptions in the Red Sea area that led to longer shipping routes and higher shipping costs for the Asia-Europe shipping and trade route.

The Port of Baltimore is one of the busiest ports on the US East Coast and is also one of the major ports for major automakers, such as Ford and General Motors, and European automakers with nearby facilities.

The bridge collapse is also seen to have an impact on coal exports, with the port being the second largest terminal for the exports of US coal, which could affect US coal exports and shipments to India and, indirectly, to other countries around the world, Ricafort said.

Based on the analytics firm Kpler, the Port of Baltimore loaded 2.4 million metric tons of coal in February, up from 2.1 million metric tons a year earlier.

The collision happened on Tuesday when a 300-meter container ship hit the footing of the Francis Scott Key Bridge in the Patapsco River, sending multiple vehicles down the harbor.

The USA was the Philippines’ top supplier of export goods during the first month of 2024 having an export value of $902.33 million or a share of 15.2 percent of the country’s total exports.

Among top trading partners of imports, the USA posted an import value of $671.86 million or 6.6 percent share of the total imports. — Xander Dave Ceballos