Ag Imports/Exports Impacted by Baltimore Key Bridge Disaster
On March 26, a container ship slammed into Baltimore’s Francis Scott Key Bridge, resulting in the catastrophic collapse and the tragic loss of six construction workers.
Aside from the impacts to the families that lost loved ones, the destroyed bridge has physically cut off key agriculture coal, container and vehicle terminals at the Port of Baltimore from the outside world.
In 2021, the port’s terminals processed over 37 million short tons of combined import/export product, ranking Baltimore 17th in terms of cargo throughput in the U.S. According to the state of Maryland, the port generates about $3.3 billion in personal income, 15,330 direct jobs and 139,190 related jobs.
Importance of the Port for Agriculture
While the Port of Baltimore's direct impact on agricultural trade is relatively small, its role in providing access to international markets cannot be understated, and the collapse of the Key Bridge serves as a stark reminder of how small the world really is.
Because the port is 150 miles closer to the Midwest markets than any other mid-Atlantic harbor, Baltimore has become the No. 1 U.S. port for overall roll-on/roll-off (ro-ro) cargo volume and is also No. 1 for farm machinery imports and exports. In addition to geography, the port also has nearly 200 acres of pavement at the Dundalk Marine Terminal where it can handle more ro-ro equipment than neighboring ports.
Since ro-ro cargo constitutes a substantial portion of Baltimore's cargo volume, delays in deliveries of equipment will put pressure on farmers as the weather warms and the planting season approaches.
Baltimore is important for more than farm equipment; last year the port exported more than 605,000 metric tons of agricultural products, valued at nearly $650 million. While this represents a fraction of total U.S. agricultural exports, it includes significant quantities of soybeans, forest products and sugar. The port's role in reaching Taiwan, China and Colombia underscores its importance for American farmers looking to access global markets.
Ag Imports
The port’s central, inland location gives it convenient access to Maryland, central and western Pennsylvania and the rail networks of the Midwest. Of all ag-related businesses, experts see sugar refineries as the most exposed to negative impacts from the Port’s closure. However, refineries have assured customers they had six to eight weeks of raw sugar on hand.
On the import side, more than 1.59 million metric tons of agricultural products entered through the port, equalling nearly $3.34 billion in total value. By quantity, over 25% of all U.S. imported raw beet and cane sugar entered through Baltimore last year, or about 562,000 metric tons, valued at $391 million.
More than $1 billion in forest products were imported through Baltimore in 2023 (1.98 million cubic meters), which was nearly 4% of all imported forest products. The port also serves as a significant conduit for industrial alcohols and fatty acids (11% of all U.S. imports), coffee (6.2%) and spices (9.1%), highlighting the vast impact delays or diversions can have.
In terms of quantity imported, the customs district of Baltimore ranks No. 18 out of 43, right behind Duluth, Minnesota, and ahead of Ogdensburg, New York, with the largest import origins entering Baltimore, by value, from Brazil, Indonesia and Spain.
Ag Exports
On the export side, more than 605,000 metric tons of agricultural products were exported from Baltimore last year, worth about $650 million.
In terms of quantity exported, Baltimore is right in the middle of the pack (22nd out of 43) but, with chaos at the port, supply chain issues will eventually lead to higher prices, so an uptick in the local price of inputs is on the horizon, experts said. However, most farmers have likely secured their input supply for the year, but for those in the region waiting on shipments, diversions can cause expensive delays.
What Lies Ahead
The global freight network has shown impressive resilience in adapting to these all-too-common disruptions. Nearby ports like Chesapeake, Virginia, and Philadelphia are sure to see increased activity as diversions occur, and officials urge farmers to monitor developments closely and prepare for potential logistical hurdles in the coming months.
The Port of Baltimore stands as a crucial gateway for both imports and exports, and while its impact on agricultural trade is relatively minor, its significance in providing regional farmers access to international markets for businesses, should not be minimized.