What is the economic fallout of Baltimore’s Key Bridge collapse?

The Baltimore Francis Scott Key Bridge collapse has trapped vessels in the Port of Baltimore and halted all traffic in or out, until further notice.

Maryland has received initial federal funding of $60m as state authorities work to clear the debris from the disaster. This emergency relief funding is to cover “mobilization, operations and debris recovery”, the state said.

The ninth largest port in the United States, the Port of Baltimore handles automobiles, machinery, agricultural equipment, liquefied natural gas and sugar. Last year, the port handled 50 tons of cargo, equaling $80 billion of international commerce.

The port processed 847,158 cars last year, according to the state of Maryland—70% of which were imported.

The US Representative for Maryland, David Trone, said that state and federal officials estimated the port’s closure would cost the economy as much as $15m per day.

The port supports 15,000 jobs directly and 14,000 indirectly, according to Maryland Governor Wes Moore’s office. While no one should lose their jobs due to these delays, they may lose wages.

Losses from the bridge collapse are likely to hit the insurance sector harder than anything else. After the collapse, Bloomberg reported that insurers could face claims as much as $3 billion. These include claims for damage to the bridge, liabilities for wrongful deaths and disruption to businesses caused by the closure of the port as ships will have to reroute.

According to Windward, a maritime risk management company, the estimated time of arrival for Baltimore-bound vessels doubled between Monday and Tuesday. Windward additionally predicted that ships scheduled to go to Baltimore would be delayed by at least 24 days.

Due to the fact that Baltimore’s port holds just 4 percent of all East Coast trade volume, according to S&P Global, experts say that the effects of the disaster should be financially manageable in the short-term.