Concerns about the impact of the Baltimore bridge collapse on auto imports and exports are beginning to fade as automakers turn to other ports on the East Coast.
On Thursday, market researcher Cox Automotive said it expected the situation in Baltimore to don’t have any material impact on vehicle sales in the United States.
“While Baltimore is the most important port for auto shipments, it is unlikely to cause or create a new, sudden problem in vehicle shipments that would have a material impact on the market,” Jonathan Smoke, Cox’s chief economist, said on a conference call. “The port handles exports and imports, but there are alternatives.”
Mercedes-Benz said it has already found other ways to service the vehicles it normally imports from Germany via Baltimore.
“Together with our transportation partners, we have reviewed and successfully adjusted our delivery routes,” the company said in an announcement. “We are confident that our vehicles will be able to be delivered on time to U.S. customers in April.”
The company added that along with Baltimore, it already uses ports in Charleston, South Carolina, and Brunswick, Georgia. Mercedes also said it had no impact on exports of vehicles it produces in Tuscaloosa, Alabama, or parts supplies to that plant.
Most vehicles sold in the United States are assembled in North America. Even for European automakers which have relied on the Port of Baltimore, the impact is more likely to be small because lots of their hottest models are built here.
For example, BMW produces its SUVs in South Carolina. It imports sedans and sports cars from Germany, but they’re sold in smaller quantities than SUVs. The two exceptions are the BMW 3 and 4 Series sedans. But the automaker must have enough inventory at dealers to sustain sales for a while.
According to Cox Automotive, BMW had enough vehicles in dealerships at the end of March to last almost 70 days at its current sales pace, which is barely below the industry average.
Additionally, a few of the Port of Baltimore’s automotive operations weren’t interrupted by the bridge collapse. The Tradepoint Atlantic terminal utilized by Volkswagen is positioned at the mouth of the harbor, east of the Francis Scott Key Bridge, and continues to be accessible to ocean-going vessels.
Cars are transported on ships called roll-on-roll-off ships. These ships require specialized port and dock infrastructure. Imported vehicles also must be processed at the port before they will be shipped to dealers. Sometimes additional equipment is installed on cars before they’re loaded onto trucks or trains.
The Port of Brunswick in Georgia already handles lots of of 1000’s of cars, trucks and other vehicles annually. Its automotive facility, Colonel’s Island Terminal, covers greater than 600 acres, with greater than 400 acres available for expansion. The ports of Charleston, Jacksonville, Florida, Newark, and Norfolk, Virginia, may handle roll-on and roll-off vessels.
