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The recent collapse of the Francis Scott Key Bridge into the Patapsco River on March 26 has caused a temporary halt to all shipping traffic from the Port of Baltimore, raising concerns about its impact on the energy markets. However, the closure is expected to have minimal impact on the transportation of commonly used petroleum products, as ship tracking data shows limited activity in this sector at the port. Baltimore mainly imports biodiesel, asphalt, and urea ammonium nitrate, with the latter being crucial for agricultural demand in Midwestern markets. While other ports along the U.S. Atlantic Coast also have the capacity to import asphalt, the closure of the Baltimore port could disrupt the supply chain for these products.

The Energy Information Administration predicts that the coal markets will be most significantly impacted by the closure of the Port of Baltimore. Baltimore is the second-largest coal exporting hub in the U.S., accounting for 28% of total coal exports in 2023. Annual coal exports from the port have been around 20 million short tons over the past five years, with a surge to 28 million short tons in 2023 driven by increased demand in Asia. The port’s strategic location near the northern Appalachia coal fields enhances its attractiveness for coal exports, with steam coal for power generation and metallurgical coal for steel production being the primary types exported.

The Port of Baltimore plays a crucial role in facilitating coal shipments to domestic and international markets, with two full-service terminals equipped to handle coal shipments. Steam coal is the predominant type exported, with major destinations including India and various European countries, while metallurgical coal is primarily exported to Asian markets such as Japan, China, and South Korea. However, the current interruption in operations at the Baltimore port is likely to impact export volumes for the year, potentially hindering the projected growth in total U.S. coal exports for 2024.

Despite the temporary halt in shipping traffic from the Port of Baltimore, the impact on the transportation of refined petroleum products and other petroleum-derived products is expected to be minimal. While Baltimore serves as a key entry point for asphalt and urea ammonium nitrate, other ports along the U.S. Atlantic Coast also have the capacity to import these products. The closure of the port could disrupt the supply chain for these products, but alternative ports could help mitigate the impact on the energy markets.

In conclusion, the recent collapse of the Francis Scott Key Bridge has led to a temporary halt in shipping traffic from the Port of Baltimore, causing concerns about its impact on the energy markets. While the transportation of commonly used petroleum products is expected to be minimally affected, the closure of the port could have a significant impact on the coal markets, given Baltimore’s status as a major coal exporting hub. The interruption in operations at the Baltimore port is likely to influence export volumes for the year, potentially impacting the projected growth in total U.S. coal exports for 2024.

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