The Key Bridge Collapse Disrupts Automotive Supply Chains
Please say more automotive supply chain delays aren’t about to strike. Drivers have already suffered delays with the Ford F-150, Tesla Cybertruck, Toyota RAV4, and more due to Covid and rising inflation creating shortages. Now the Baltimore Key bridge collapse could cause new problems.
Ford, Toyota, Subaru, and more face shipping chaos due to the Baltimore Key Bridge collapse
Many vehicles such as the 2024 Ford F-150, Toyota RAV4, Subaru Crosstruck, Nissan Frontier, and more have been finally shipping to dealerships.
However, the collapse of the Francis Scott Key Bridge in Baltimore, Maryland could contribute to significant delays.
Automotive industry delays already caused skyrocketing prices and limited inventory when Covid hit along with the semiconductor chip shortage and other supply chain constraints.
Things were finally getting back on track. However, the Port of Baltimore is the busiest port of entry for the automotive industry, and vessel traffic is currently suspended until further notice. Last year, 850,000 vehicles passed through the port. But trucks can still be processed.
Audi, Bently, Ford, General Motors, Jaguar Land Rover, Lamborgini, Mazda, Mercedes, Nissan, Subaru, Toyota, and Volvo depend on the port for imports, exports, and shipping components.
According to Automotive News, Volkswagen and BMW won’t be hit as hard because they have terminals located to the east of the bridge, and that area is still accessible.
John Bozzella, CEO of the Alliance for Automotive Innovation, which is a firm that represents Ford, General Motors, Toyota, Volkswagen, and more, shared that it’s too early to determine what impact this tragic accident will have on the automotive industry, but disruptions are certain.
He continued to explain that Baltimore is the busiest port for the automotive industry in the United States and they’re in touch with federal officials to understand the scale of automotive operations.
Ford CFO, John Lawler mentioned that it’s working on a workaround. Parts could be divided to other ports along the East Coast or other parts of the country. General Motors is working with logistic teams to identify shipping solutions at other ports.
Some automotive companies only expect a minimal disruption. However, the extent of the shipping disruption will probably be unknown for a while, similar to the supply chain issues that emerged during COVID-19.
