Supply chain visibility data company project44 says a “rough” estimate of the potential cost of the closure of the Port of Baltimore after the March 26 collapse of a bridge into a critical waterway, will be more than $37 million in demurrage alone.
The Port of Baltimore has seen roro and container vessel traffic resume with the opening of a deep-water channel on May 14, allowing access to four alternative channels. The new channel should enable the port to receive container vessels again.
Shipments originally destined for Baltimore are being rerouted primarily to New York (55%), Norfolk (22%), and Newark-Elizabeth (9%). Overall port dwell has not increased at these ports, but dwell of rerouted containers is trending up to 196% higher than overall dwell, project44 says.
Project44’s estimate of extra demurrage costs is based on the average number of free days allowed by ocean carriers before demurrage charges kick in – typically 3-5 days. Project44 said that, while ocean carriers are not obligated to increase free days or absorb detention fees, some carriers may opt to grant extra free days to customers given the circumstances of the bridge collapse.
