The recent bridge collapse in Baltimore is poised to disrupt the city’s significant coal-exporting operations, according to analysis from the Energy Information Administration (EIA).
The Port of Baltimore, currently grappling with the aftermath of a vessel collision involving the Maersk ship and the Francis Scott Key Bridge, stands as the second-largest coal-exporting hub in the United States. The EIA’s data reveals that in 2023, this port facilitated a substantial 28% of the nation’s total coal exports, amounting to 28 million short tons.
This incident comes at a time when the EIA had already predicted a slowdown in coal exports due to the increasing adoption of renewable energy sources. However, the temporary closure of the port is anticipated to exacerbate the decline in coal exports, as stated by the agency.
The repercussions of the bridge collision have already reverberated through the market, with notable decreases in the stock prices of key entities involved in the coal trade within Baltimore, such as Consol Energy and CSX Railroad.
Most of the coal departing from the Port of Baltimore is destined for Asian markets, particularly India, where a burgeoning manufacturing sector drives demand. China and Japan have also shown increasing interest in US coal exports in recent years.
While the impact on energy markets beyond coal is expected to be limited, the closure of the Baltimore terminal could disrupt agricultural markets. The port’s strategic proximity to Midwestern markets, which have a robust demand for fertilizers, could result in logistical challenges. Additionally, the terminal’s role as a primary importer of urea ammonium nitrate, a liquid fertilizer product, along the Atlantic Coast further underscores its significance in agricultural trade, as highlighted by the EIA researchers.