Concerns about the impact of the Baltimore bridge collapse on auto imports and exports are starting to diminish as car companies shift to other ports along the East Coast.
Cox Automotive, a market researcher, stated on Thursday that it does not anticipate the situation in Baltimore to significantly affect vehicle sales in the United States.
“While Baltimore is a major port for auto shipments, this is not expected to cause a sudden problem in vehicle supply that will have a major impact on the market,” said Jonathan Smoke, Cox’s chief economist, during a conference call. “There are alternative ports for imports and exports.”
Mercedes-Benz mentioned that they have already found alternative routes for importing vehicles from Germany through Baltimore.
“In collaboration with our transport partners, we have reviewed and successfully adjusted our supply routes,” the company stated. “We are confident that our cars will be delivered on time to U.S. customers in April.”
The company also noted that they use ports in Charleston, S.C., and Brunswick, Ga., in addition to Baltimore. Mercedes confirmed that exports from their Tuscaloosa, Ala., factory and shipments of parts were not affected.
Most vehicles sold in the U.S. are manufactured in North America, which should help mitigate the impact on European automakers relying on the Port of Baltimore.
For example, BMW produces its S.U.V.s in South Carolina and imports sedans and sports cars from Germany. However, the impact should be minimal as S.U.V.s are the best-selling models. The BMW 3 and 4 Series sedans could be exceptions, but the company has enough inventory to sustain sales for a while.
At the end of March, BMW had a sufficient inventory on dealer lots to last almost 70 days at the current sales rate, slightly below the industry average, according to Cox Automotive.
Furthermore, a portion of the Port of Baltimore’s automotive operations remains unaffected by the bridge collapse. The Tradepoint Atlantic terminal, used by Volkswagen, is still accessible to oceangoing vessels.
Vehicles are transported on roll-on, roll-off ships that require specialized port facilities. Ports in Brunswick, Charleston, Jacksonville, Newark, and Norfolk can accommodate these ships.
