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A Wallenius Wilhelmsen vessel in port

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Wallenius Wilhelmsen Expects Up to $10 Million Hit from Baltimore Bridge Collapse

Mike Schuler
Total Views: 6153
April 3, 2024

Roll-on/roll-off shipping company Wallenius Wilhelmsen has forecasted a financial impact ranging between $5 to $10 million due to the collapse of Baltimore’s Key Bridge, assuming the disruption lasts only a month.

Baltimore serves as a key U.S. hub for the company, handling a substantial amount of North American imports and exports, particularly cars and heavy equipment.

Therefor, the suspension of all vessel traffic in and out of Baltimore port until further notice has posed significant operational and financial implications for the company. Wallenius Wilhelmsen says it is working diligently with port authorities, partners, and stakeholders to devise alternative solutions to minimize the impacts to its operations.

Cargo bound for Baltimore currently on the water is being redirected to other U.S. ports, including Newport News, Newark, and Savannah, as Baltimore’s terminals remain open to road traffic and fully operational. Meanwhile, the company’s vessel, M/V Carmen, is docked at the Port of Baltimore, awaiting clearance to set sail once the channel reopens.

These Are the Ships Stuck Behind the Baltimore Key Bridge

While there are currently no solid estimates for when the channel may reopen, the company is planning for the closure to last at least for weeks.

“Once open, we anticipate the terminal will also promptly resume normal cargo operations as vessels begin to make port calls as previously scheduled. There is of course risk of delays to the anticipated reopening, or unforeseen challenges in the salvage operations,” the company said.

The estimated total financial impact on Wallenius Wilhelmsen’s EBITDA is anticipated to be between $5-10 million, assuming disruptions continue for up to a month. “This considers both the reduction of logistics operations in Baltimore, Carmen being unable to exit the port and other disruptions to our shipping operation,” it said.

In the meantime, Wallenius Wilhelmsen is looking to mitigate the financial impacts by rerouting cargo to and from other U.S. terminals.

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