How US bridge collapse could impact Indian importers and supply chains

U.S. bridge collapse raises concerns about potential supply chain disruptions

New Delhi:

The collapse of the Francis Scott Bridge in Baltimore, US, has sent shockwaves across India’s coal and petcoke markets, raising concerns about potential supply chain disruptions and price impacts.

The incident, caused by a collision between a ship and a support tower, has halted sailings at the Port of Baltimore, a key hub for coal exports, S&P Global Commodities Insights reported.

India is a major importer of U.S. thermal coal and its supply chain is facing challenges after the bridge collapse.

Drone footage of the Dali cargo ship hitting the Francis Scott Key Bridge in Baltimore, causing it to collapse
Image source: Reuters

The incident is expected to limit Arch Coal shipments and create logistical hurdles for Indian importers, according to a U.S. trader.

A broker told S&P, “This incident will limit Arch Coal’s NAPP shipments and create a lot of problems in the supply chain in India. There may be an impact on thermal coal in Europe. The impact will be greater in India. Note The rise in petcoke prices!”

The trader warned that prices for petcoke, a by-product of the coal refining process, could rise, which could put further pressure on Indian energy markets.

However, there are mixed views within the Indian market on the extent of the pricing impact.

Aerial view of Baltimore’s collapsed Francis Scott Key Bridge
Image source: Reuters

An Indian trader expressed doubts about major disruptions, noting that major suppliers such as Consol and Arch have not yet declared force majeure.

Still, concerns remain about possible delays in coal shipments and the resulting pressure on India’s energy industry.

India is heavily dependent on imported coal and any disruption to global supply chains could have far-reaching consequences.

The Indian trader said, “The authorities will need 6 to 7 days to assess the amount of debris caused by the accident and the draft available because if the draft is too low, problems may arise. The authorities may take 10 to 15 days time to evaluate”. It will take several days to clear the wreckage, so that means no ships are moving in the meantime. “

The Port of Baltimore is an important loading point for U.S. thermal coal exports and plays a vital role in meeting India’s energy needs.

With navigation suspended at the Port of Baltimore, alternative routes and logistical arrangements need to be explored to ensure a stable supply of coal to India.

While some market participants expect the incident to cause short-term price fluctuations, others believe the overall impact on coal prices may be limited if the channel is cleared within a reasonable period of time.

Still, the situation remains fluid and Indian stakeholders are watching developments closely to assess the potential impact on energy markets.

India’s coal and petcoke importers are bracing for possible supply chain disruptions as authorities work to assess and clear the wreckage of collapsed bridges.

With India’s energy security at risk, attention is focused on finding alternative solutions to mitigate the impact of the Baltimore Bridge collapse on the country’s energy sector.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)