imagewerks/iStock via Getty Images
Fitch Ratings said on Thursday that it believes East and Gulf Coast ports should maintain sufficient capacity to handle rerouted cargoes given capacity upgrades and improvements following the collapse of the Francis Scott Key Bridge in Baltimore.
The ratings agency said ports along the East Coast will see an uptick in volumes with short-term congestion as they accommodate rerouted cargoes. Meanwhile, larger U.S. East Coast ports such as New York-New Jersey and Port of Virginia were noted to have sufficient capacity to handle additional container imports and exports and larger sized ships. Other smaller East Coast ports are expected to see congestion and temporary capacity and labor pressures. Alternative ports with sizable market share to handle automobile cargo flow include the Port of Brunswick, Georgia, the Port of Charleston, South Carolina, and Jaxport in Jacksonville, Florida.
“Despite Baltimore’s significance in vehicle cargo flows, we expect the Baltimore port disruption to have a minimal impact on the operations and production of North American auto manufacturers or suppliers. Automakers are adept at dealing with supply chain disruption issues and are in discussion with various transportation providers to establish contingency plans and reroute cargo.”
Fitch Ratings did not change any of its ratings or credit assessments on major automakers U.S. General Motors (NYSE:GM), Ford Motor (NYSE:F), and Stellantis N.V. (NYSE:STLA).
