Concerns about the impact of the Baltimore Bridge collapse on auto imports and exports are beginning to fade as auto companies turn to other ports along the East Coast.
On Thursday, market researcher Cox Automotive said it does not expect the situation in Baltimore to have a significant impact on U.S. vehicle sales.
“Although Baltimore is the primary port for auto deliveries, this is unlikely to cause or create a sudden new problem in vehicle supply that will have a material impact on the market,” Cox chief economist Jonathan Smoke said in a conference call. “The port is heavily influenced by exports and imports, but there are alternatives.”
Mercedes-Benz said it had already found other ways to handle the vehicles it normally imports from Germany through Baltimore.
“Together with our transport partners, we have checked and successfully adjusted our delivery routes,” the company said in a statement. “We are confident that our cars can be distributed to customers in the US on time in April.”
The company added that in addition to Baltimore, it already uses ports in Charleston, South Carolina, and Brunswick, Georgia. Mercedes also said exports of vehicles it makes in Tuscaloosa, Alabama, and the supply of parts for that plant would not be affected.
Most vehicles sold in the United States are assembled in North America. Even for European automakers that rely on the Port of Baltimore, the impact is likely to be muted because many of their most popular models are made here.
BMW, for example, makes its sport utility vehicles in South Carolina. It imports sedans and sports cars from Germany, but sells them in smaller numbers than SUVs. Two exceptions are the BMW 3 Series and 4 Series sedans. But the automaker should have enough inventory of dealer lots to keep sales going for some time.
According to Cox Automotive, BMW had enough vehicles on dealer lots at the end of March to last nearly 70 days at the current sales rate, which is slightly below the industry average.
Additionally, some of the Port of Baltimore’s automobile operations were not shut down by the bridge collapse. The Tradepoint Atlantic Terminal used by Volkswagen is located at the mouth of the harbor, east of the Francis Scott Key Bridge and is still accessible to seagoing vessels.
Automobiles are transported in ships called roll-on-roll-off vessels. These ships require special port and dock facilities. Imported vehicles also need to be processed at the port before they can be shipped to dealers. Sometimes additional equipment is installed in cars before they are loaded onto trucks or trains.
The Port of Brunswick, Georgia, already handles hundreds of thousands of cars, trucks and other vehicles each year. Its automotive facility, Colonel’s Island Terminal, spans more than 600 acres and has more than 400 acres for expansion. Ports in Charleston, Jacksonville, Florida, Newark and Norfolk, Virginia can also handle roll-on/roll-off vessels.
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2024-03-28 22:29:20
www.nytimes.com
