Concerns about the impact of the Baltimore bridge collapse on auto imports and exports are beginning to ease as auto companies turn to other ports along the East Coast.
On Thursday, market researcher Cox Automotive said it expected the situation in Baltimore not to have a material impact on vehicle sales in the United States.
“While Baltimore is the top port for auto shipments, this is not likely to cause or create a sudden new problem in vehicle supply that will materially affect the market,” Jonathan Smoke, Cox’s chief economist, said in a conference call. “The port is heavy for exports and imports, but there are alternatives.”
Mercedes-Benz said it has already found other ways to handle the vehicles it normally imports from Germany through Baltimore.
“Together with our transportation partners, we have successfully reviewed and adjusted our supply routes,” the company said in a statement. “We are confident that our cars can be delivered in time to customers in the US in April.”
The company added that it already uses ports in Charleston, SC, and Brunswick, Ga., in addition to Baltimore. Mercedes also said exports of vehicles it builds in Tuscaloosa, Ala., and shipments of parts for that plant were not affected.
Most vehicles sold in the United States are assembled in North America. Even for European automakers based in the port of Baltimore, the impact is likely to be lessened because many of their most popular models are made here.
BMW, for example, builds its SUVs in South Carolina. It imports sedans and sports cars from Germany, but they sell in smaller numbers than SUVs. Two exceptions are the BMW 3 Series and 4 Series sedans. But the automaker should have enough inventory on dealer lots to sustain sales for some time.
At the end of March, BMW had enough vehicles on dealer lots to last nearly 70 days at its current sales rate, which is slightly below the industry average, according to Cox Automotive.
Additionally, part of the Port of Baltimore’s auto industry has not been shut down due to the bridge collapse. The Tradepoint Atlantic terminal, which is used by Volkswagen, is located at the mouth of the harbor, east of the Francis Scott Key Bridge, and is still accessible to ocean liners.
Cars are transported on ships known as roll-on, roll-off ships. These ships require specialized port and port facilities. Imported vehicles must also be processed at the port before being sent to dealers. Cars are sometimes fitted with additional equipment before being loaded onto trucks or trains.
The Port of Brunswick, Georgia already handles hundreds of thousands of cars, trucks and other vehicles annually. Its automotive plant, Colonel’s Island Terminal, covers more than 600 acres and has more than 400 acres available for expansion. Ports in Charleston, Jacksonville, Florida, Newark, Virginia, and Norfolk, Virginia can also handle roll-on, roll-off vessels.
