Baltimore port closure will impact sugar imports, farm equipment
Steenhoek
| After a cargo ship hit a Baltimore bridge Monday evening, causing it to collapse, traffic at the Port of Baltimore has been suspended until further notice.The crash can be seen in a video on the Farm Progress at https://www.farmprogress.com/business/baltimore-port-is-an-ag-equipment-hub. Maryland officials are focusing on the search for eight missing people, but reopening the port may take a long time. Washington Trade Daily noted, “It has been reported that 10 ships are stuck inside the port unable to leave as the bridge spans the only route in and out of the harbor where the port is located. Another 30 small cargo ships, tug boats and pleasure craft are also in the port, while about 40 heading for Baltimore have been forced to divert.” Baltimore is not a significant port for exporting soybeans and grain, but it is a significant importer of raw sugar and an exporter and importer of farm equipment, along with automobiles and light trucks. “Domino is the port’s largest bulk importer — refining, packaging and shipping sugar at a rate of six million pounds per day,” the Maryland Transportation Department said in a statement on its website in 2020. But the Florida-based ASR Group, which owns the Domino refinery in Baltimore, said it does not expect an immediate impact on its operations. In a statement, ASR said, “We are deeply saddened by the tragic collapse of the Francis Scott Key Bridge in Baltimore, and our hearts go out to the families and friends of the victims. We also commend the first responders who aided survivors and continue the search and rescue operation. “No short-term impact to our operations in Baltimore is expected. The Baltimore Refinery has six to eight weeks of raw sugar supply on hand with a ship currently discharging at the dock and another that finished unloading on Monday. Our network of production facilities and warehouses across the U.S. all currently have healthy inventories of finished products that can be utilized if necessary.” The Association of Equipment Manufacturers told Farm Progress: “The Port of Baltimore is a very important part of our industry’s ability to ship equipment and equipment components all over the world. While the impact of the bridge collapse on the off-road equipment manufacturing industries is of significant concern, it is too early to predict the impact currently.” But Baltimore also imports farm equipment. Dean Croke, principal industry analyst at DAT Freight & Analytics, told Bloomberg that Baltimore’s proximity to the Midwest’s major farm and construction equipment manufacturers “has helped it become the leading U.S. port for importing combines, tractors, hay balers, excavators and backhoes.” |
| According to Mike Steenhoek, executive director of the Soy Transportation Coalition, the top five agricultural products handled (import and export combined) at the Port of Baltimore are: 1. Sugar 2. Soybeans 3. Grain products (including corn and wheat) 4. Coffee 5. Grocery items Steenhoek explained, “In 2020 (the most recent year available from USDA), the Port of Baltimore exported 142,152 metric tons of soybeans via container. There are no reported soybean exports via bulk vessel. The port imported 172,228 metric tons of soybeans via container and 34,185 metric tons of soybeans via bulk vessels. In contrast, the Mississippi Gulf region — the leading export region for soybeans — accounted for 35.4 million metric tons of soybean exports by bulk. There are no exports of soybeans via container from the Mississippi Gulf region.” |
