The collapse of Baltimore’s Francis Scott Key Bridge Tuesday could block as much as 2.5 million tons of coal exports from the country’s second-largest coal-exporting port over up to six weeks, but the disruption will have little impact on global prices. Most of the coal passing out of Baltimore Harbor is high-sulfur thermal coal bound for Asia for power production, and the disruption could affect Indian markets.
Companies also have the ability to divert some, but not all, of Baltimore-bound coal shipments to other ports, most significantly Norfolk, Virginia. Approximately 500,000 tons of LNG exports are also shipped through the area blocked by the collapsed bridge every month.
The Key Bridge collapsed early Tuesday morning after being hit by a container ship that lost power soon after leaving the Port of Baltimore. Six people are presumed dead. President Biden promised to “move heaven and earth” to rebuild the bridge and said the federal government would foot the bill. (Bloomberg $, Wall Street Journal $, Argus Media, New York Times $, CBC, Business Insider, Heatmap $, CNBC, Barron’s; LNG: Reuters; Biden: Politico Pro $, Politico Pro $; Collision/collapse details: Baltimore Sun, Wall Street Journal $, AP)