Shipping traffic halted at Port of Baltimore following Tuesday Francis Scott Key Bridge Collapse It has already taken a toll on businesses and workers in the region.
Teresa Abel, operations manager for Davis Ship Services, a logistics company that provides trash removal, engine parts and other ship support services, told CBS MoneyWatch that the business is completely homegrown. Depends on the activity associated with the port. Usually a busy company with steady demand for its services, the phone went silent.
“It's so quiet it's scary. There's no email or phone calls,” Abel said.
The 10-employee company's warehouses store parts for incoming ships, but they are expected to be empty by the end of the week as ships are diverted to nearby ports and orders are halted. She expects to be deaf.
Davis Ship Services is still servicing several vessels already in port. when the bridge collapsed. “They need things and they have to pump the sewage while they’re here, but it’s very quiet,” she said.
“If ships don't come into port, my market doesn't exist,” said Michael Moss, owner of Moss Marine, another small business that does technical ship repair at the port. He also said he might be able to help fix Dali. A ship collided with the Key Bridge.
“They're going to have to spend some money at the port before they leave so they can travel safely. They're going to have to do something in my turf, whether it's me as a contractor or someone else. “It won't have to be,” he said. Otherwise, we expect the ship to be called to another nearby port for maintenance.
“It's going to cost more money for them because I have to travel. It's an inconvenience,” Moss said.
A bigger disruption than the coronavirus?
Maryland Senate President Bill Ferguson told CBS MoneyWatch that all businesses at the Port of Baltimore will be “seriously challenged” by the bridge collapse.
Ferguson characterized the disaster as the port's version of a “global pandemic” and described the potential havoc as a threat to businesses during COVID-19, which has severely disrupted global supply chains. and the impact on employment.
The port's operations directly support 15,000 jobs and indirectly a further 140,000 roles in hospitality and other industries, making it a major economic driver for the region. Longshoremen are employed by a variety of companies, including trucking companies, container repair companies, and tugboat operators.
Mr Ferguson said the near-term economic outlook would be bleak if these businesses did not receive meaningful financial support soon.
“The range of companies and jobs affected is incredibly diverse,” he added. “We have companies that repair hinges on cargo containers, we also have bay pilots, longshoremen, longshoremen. At this point, everyone is affected.”
Unlike some industries and businesses that shut down during the pandemic, the Port of Baltimore remained open as international trade continued. “The port was still functioning and port-related businesses were considered essential,” Ferguson said. “However, this would cut off international trade in the region.”
Expected workforce reductions
Ferguson said he has spoken to small business owners who say their operations are frozen for the time being and they expect to have to lay off employees in the coming weeks.
“We're trying to put together a bill for these small businesses that are trying to find ways to keep their employees employed and utilize them even when the ports are closed,” he said.
Mr Ferguson added that the bridge collapse highlights the importance of the port to the local economy. “Sometimes we take it for granted because it's always been there, but not now.”
Cruise line operator Carnival told shareholders that the bankruptcy could cost them up to $10 million in revenue, while its labor union said thousands of its members could lose their jobs.
International Longshoremen's Association Baltimore local president Scott Cowan told WTOP News that 2,400 ILA members “will soon be out of work.”
To soften the blow, the Maryland General Assembly is drafting emergency legislation: provide direct support To affected companies. Ferguson said providing incentives to encourage port-related employers to maintain a presence in Baltimore is also a key element of the bill.
Experts said the bridge collapse would have a significant impact on businesses in Maryland, but would not have a significant impact on the overall U.S. economy.
”Nevertheless, the port is the 15th largest in the country and handles only 1.5% of the country's container traffic, so an extended closure will have no impact on GDP or inflation.” said Paul Ashworth, chief North American economist at Capital Economics. Research notes.