Baltimore Bridge Collapse Disrupts Global Coal Trade
The disaster is a reminder of the commodity’s persistent importance to the global economy. By Matt Whittaker
April 1, 2024, at 2:56 p.m.
The Port of Baltimore accounted for 28% of the nation’s coal exports last year.
When the Francis Scott Key Bridge in Baltimore collapsed last week after a huge container ship ran into a support column, the fatal event sent ripples throughout the global supply chain that are still being assessed.
Authorities have closed an area within 2,000 yards of the wreckage, blocking access to the Port of Baltimore, the second-largest U.S. coal exporting hub behind Norfolk, Virginia.
“Losing the port can prove to be a significant disruption if other ports can’t surge to provide an outlet for the coal that would have been exported through Baltimore,” says Northern Arizona University assistant research professor and supply chain expert Richard Rushforth. “We’re in the early days, still so we’ll have to see how this plays out.
Coal’s Role in Global Economies
Last year, global coal demand hit a record high of more than 8.5 billion metric tons amid strong demand in emerging and developing economies, according to the International Energy Agency. Consumption increased by 8% in India and 5% in China, a sharp contrast to the record 20% drop in both the U.S. and Europe. Although the agency expects global coal demand to decline by 2026, it is projecting a fall of just 2.3%, leaving the world to still consume 8.3 billion metric tons.
