AP Moller-Maersk said that depending on the progress of the cleanup of the collapsed bridge in the Port of Baltimore, it may be possible to set a timetable for a return to the port in the next week or so and to restore network service to the Port of Baltimore. The world’s second largest ocean carrier may arrive by the end of this month. .
“The situation is fluid and the uncertainty depends on how the cleanup activities progress and when the channel will open to larger ships again,” said Charles van der Stein, president of Maersk North America. “But depending on progress, if the channel opens by the end of May “Our network team expects to make a final decision on rerouting the vessel back to the Port of Baltimore within the next five to 10 days.”
A spokesperson for the Unified Command, the government entity responsible for the effort, told CNBC that the Unified Command will decide on authorizing the reopening of the port..
Remains of the foundation bridge at the entrance to the Patapsco River in Baltimore Harbor on May 2, 2024, Baltimore, Maryland.
Brendan Smirovsky | AFP | Getty Images
Maersk ships could begin arriving at the Port of Baltimore in late May or early June, according to a review by Maersk’s online team of cleanup efforts after the container ship Dali crashed into the Francis Scott Key Bridge.
Van der Steene said Maersk teams had unloaded less than 200 containers from the Dali in the past nine days.
“At this stage, there are no immediate plans to move more containers from the Dali River, it depends almost entirely on being able to float the containers and ensure we can get them into the port,” Vanderstein said.
Maersk is the shipping company that chartered the Dali.
Salvage crews work on the wreckage of the cargo ship Daly after it collided with the Francis Scott Key Bridge on April 4, 2024 in Baltimore, Maryland.
Kevin Dickey | Getty Images News | Getty Images
The process of removing the containers from the 984-foot-long Dali ship began in early April. After the collapse of the Bride on March 26, the Port of Baltimore reopened to restrict maritime traffic. The main channel returned to normal.
“At this stage, we are already helping customers create mitigation solutions through Norfolk or Newark, whether it’s road or shuttle,” Vandersteen said.
The Port of Baltimore is just one of the headwinds facing Maersk and global supply chains. In first-quarter earnings last week, Chief Executive Vincent Clerk said the Red Sea diversion would last until at least the end of the year. Ships are taking longer to circumnavigate the Cape, with global consequences for ship and container availability.
Salvage crews clear the wreckage of the cargo ship Dali after it hit the Francis Scott Key Bridge and collapsed on April 2, 2024, in Baltimore, Maryland.
Chip Somodevilla | Getty Images
“Capacity is going to be a challenge across the industry, including in North America,” Vanderstein said. “The impact is likely to be significant due to Red Sea diversions, reduced Panama Canal throughput and overall peak season growth.”
Shipping surcharges have also increased due to longer shipping times and fuel costs, with retailers passing the costs on to consumers.
But based on North American freight orders coming from Asia, Vanderstein described 2024 as a “year of reinvigoration.”
He said that view was largely driven by growth in flows into North America, particularly the United States, which “exceeded any previous expectations,” Vanderstein said. “The actual overall growth from Asia and Europe to the U.S. since the beginning of the year has exceeded our expectations.”
The cargo ship Dali comes to rest in the water after hitting the Francis Scott Key Bridge and collapsing on March 26, 2024, in Baltimore, Maryland.
Kevin Dickey | Getty Images News | Getty Images
Earlier this year, Maersk issued cautious guidance for 2024, suspended buybacks and warned of excess shipping capacity.But its Last week’s guidance has been improved.
Maersk is developing its infrastructure in Mexico, building out its terminal complex and onshore fulfillment capabilities as imports increase from Vietnam and China and then trucked to the United States.
“Our footprint will increase fivefold from the beginning of 2023 to the end of 2024,” Van der Steene said. “These additional campus buildings will help us provide fulfillment capabilities to the U.S. market.”
He said Maersk has seen an increase of at least 10% to 15% in cross-border trucking volumes, which have boomed during the pandemic and now as more manufacturing is nearshored and concerns over the ongoing trade war between China and the United States (including tariffs) have returned with a vengeance.
Van der Steene said the shipping season starts in June and runs through the summer back-to-school shopping and holidays, and shipping volumes are expected to be normal.
“There’s nothing to suggest that the peak season is going to slow down or expand,” Vanderstein said. “We believe the peak season will normalize. … Of course, depending on the industry, some retailers will be in a more severe situation than others in the second half of the year. “
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