In a shocking turn of events, the collapse of the Francis Scott Key Bridge in Baltimore has sent ripples through the cruise industry, with Carnival cruise operator warning of potential impacts on their bottom line.
The company has estimated that the bridge collapse could result in up to a $10 million impact on adjusted EBITDA and net income for the full year of 2024. In response to the crisis, Carnival has temporarily moved its Baltimore operations to Norfolk, Virginia, and rerouted its Carnival Legend ship.
As a result of the bridge collapse, vessel traffic into and out of the Port of Baltimore has been suspended until further notice. This has caused a scramble in the shipping industry, with Flexport CEO Ryan Petersen stating that they are trying to figure out drop-off locations for containers bound for Baltimore.
Petersen expects delays for containers on cargo ships that may have been impacted by the bridge collapse. While there is enough capacity in Norfolk, New York, and Philadelphia to pick up the slack from Baltimore, the sudden re-routing of shipments can lead to increased transport expenses and potentially higher costs for goods.
This latest disruption comes on the heels of a turbulent year for sea-bound operations, with attacks in the Red Sea and congestions near the Panama Canal causing previous disruptions. Ines Ferre, a senior business reporter for Yahoo Finance, has been closely following the developments and advises keeping an eye on her updates for the latest information.
The impact of the Francis Scott Key Bridge collapse on the cruise industry serves as a stark reminder of the fragility of global supply chains and the potential ripple effects of unexpected events. Stay tuned for further updates as the situation continues to unfold.
