As recovery efforts continue in Baltimore, one auto shipping firm is already anticipating its losses.
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Norweigian shipping firm, Wallenius Wilhelmsen ASA (WILWY) said in a statement on April 3 that it expects between a $5-10 million earnings loss in relation to complications it is experiencing due to the Baltimore bridge disaster.
"We have estimated that the aggregated provisional total financial impact on EBITDA of the situation is in the range of $5-10 million, assuming the disruptions last for up to a month," Wallenius said in a statement on April 3. "We currently expect the closure to last for weeks and have based our impact estimates on that assumption."
The company said that the loss is a result of a reduction in logistics operations in Baltimore. Additionally, one of its largest ships is unable to leave Baltimore's port at the moment, as well as other related operational difficulties. Wallenius Wilhelmsen also said that some of the losses have been mitigated by rerouting cargo that is set to originate or land in Baltimore to other U.S. terminals.
"Cargo on the water bound for Baltimore is currently being re-routed to other U.S. ports such as Newport News, Newark, and Savannah," Wallenius said in its statement.
Currently, salvage specialists and recovery crews are hard at work clearing the debris from the destroyed Francis Scott Key Bridge, the site where the Singaporean flagged container ship MV Dali struck and destroyed the four-lane bridge.
The crews at the site have been able to clear and open a temporary channel, allowing for smaller vessels to navigate the Port of Baltimore on April 3, however, most large-scale shipping remains impossible for the time being.
Wallenius Wilhelmsen says that its vessel Carmen — one of the biggest car carriers in its fleet, remains stuck at Baltimore's harbor and is on standby ready to sail as soon as the main channel out of the port is open.
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"Once open, we anticipate the terminal will also promptly resume normal cargo operations as vessels begin to make port calls as previously scheduled," Wallenius said in a statement. "There is of course risk of delays to the anticipated reopening, or unforeseen challenges in the salvage operations."
The Port of Baltimore is the busiest U.S. port for car shipments. According to a report by Automotive News, Baltimore port's private and public terminals handled 847,158 autos and light trucks in 2023, the most of any U.S. port.
Major automakers such Audi, Bentley, BMW, Ford, General Motors, Jaguar-Land Rover, Lamborghini, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Stellantis, Toyota, Volkswagen and Volvo all use the port to handle imports, exports and parts shipments.
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