The recent accident at the Port of Baltimore, where the Dali container ship collided with the Francis Scott Key Bridge, has caused a significant rerouting of vessel traffic.
Project 44’s analysis reveals that containers intended for Baltimore are now facing longer dwell times at other ports. While the average dwell times at these ports remain unchanged, the rerouted containers are an exception. For instance, in New York, the median dwell time for these containers is over four days, surpassing the port’s general median of 2.75 days.
Challenges in Carrier Coordination
The rerouting has led to difficulties in carrier coordination, as shippers struggle to find carriers within their network to pick up containers from these unplanned destinations.
This is particularly challenging for shippers who do not frequently operate within these ports, as they lack contracted rates for these new trade lanes. The report from Project 44 highlights the complexities and inefficiencies that arise when established shipping routes are disrupted.
Cost Implications of Delays
The financial impact on shippers is substantial, with demurrage charges for the delayed containers estimated at $188 per container.
If these charges are aggregated, the total cost could reach $3.9 million weekly. This situation underscores the need for robust contingency planning and flexible carrier agreements to mitigate the financial strain caused by unexpected supply chain disruptions.
