Considerations in regards to the influence of the Baltimore bridge collapse on auto imports and exports are starting to ease as automobile corporations flip to different ports alongside the East Coast.
On Thursday, Cox Automotive, a market researcher, mentioned it anticipated the scenario in Baltimore to don’t have any materials influence on automobile gross sales in the US.
“Whereas Baltimore is the highest port for auto shipments, this isn’t prone to trigger or create a sudden new downside in automobile provide that can materially influence the market,” Jonathan Smoke, Cox’s chief economist, mentioned in a convention name. “The port is heavy for exports and imports, however there are alternate options.”
Mercedes-Benz mentioned it has already discovered different methods of dealing with the autos it normally imports from Germany by Baltimore.
“Along with our transport companions, we reviewed and efficiently tailored our provide routes,” the corporate mentioned in an announcement. “We’re assured that our vehicles may be distributed on time for purchasers within the U.S. in April.”
The corporate added that it already makes use of the ports in Charleston, S.C., and Brunswick, Ga., along with Baltimore. Mercedes additionally mentioned exports of autos it makes in Tuscaloosa, Ala., and shipments of elements for that manufacturing unit had been unaffected.
Most autos offered in the US are assembled in North America. Even for European automakers which have relied on the Port of Baltimore, the influence is prone to be muted as a result of a lot of their hottest fashions are made right here.
BMW, for instance, makes its sport-utility autos in South Carolina. It imports sedans and sports activities vehicles from Germany, however they promote in smaller numbers than S.U.V.s. Two exceptions are the BMW 3 and 4 Sequence sedans. However the auto maker ought to have sufficient stock on supplier tons to maintain gross sales going for a while.
On the finish of March, BMW had sufficient autos on supplier tons to final almost 70 days on the present charge of gross sales, which is barely under the trade common, in response to Cox Automotive.
As well as, a part of the Port of Baltimore’s automotive operations has not been shut down by the bridge collapse. The Tradepoint Atlantic terminal, which is utilized by Volkswagen, is on the mouth of the harbor, east of the Francis Scott Key Bridge, and nonetheless accessible to oceangoing vessels.
Cars are transported in vessels often called roll-on, roll-off ships. These ships require specialised port and dock amenities. Imported autos additionally have to be processed within the port earlier than they are often despatched to sellers. Generally extra tools is put in in vehicles earlier than they’re loaded onto vans or trains.
The Port of Brunswick in Georgia already handles a whole lot of 1000’s of vehicles, vans and different autos per 12 months. Its automotive facility, the Colonel’s Island Terminal, covers greater than 600 acres, and has greater than 400 acres obtainable for growth. Ports in Charleston, Jacksonville, Fla., Newark and Norfolk, Va., can even deal with roll-on, roll-off ships.
