US Bridge Collapse: How The Incident Will Impact Indian Importers, Hit Supply Chains


New Delhi: The collapse of the Francis Scott Key Bridge in Baltimore, US is likely to impact the Indian coal and pet coke markets as it has raised concerns about the potential supply chain disruptions affecting the prices of these commodities.

As per insights from S&P Global Commodity, the incident caused by a vessel collision with a supporting Pylon has led to the suspension of navigation through Baltimore Harbour, a critical hub for coal exports. India, a major importer of thermal coal is bracing for challenges in its supply chain following the bridge collapse.

According to a trader from the US, the incident is expected to restrict shipments from Arch Coal and create logistical hurdles for Indian importers. A broker told S&P that the incident would restrict NAPP shipments from Arch Coal and create numerous problems in the supply chain for India, affecting the supply of thermal coal to Europe with the biggest impact on India. India will see the Pet Coke price skyrocket.

A trader cautioned that further strain on India’s energy markets could result from possible price spikes in Petcoke, a byproduct of the coal refining process. Regarding the extent to which pricing affects the Indian market, however, there are divergent views among various individuals. A dealer from India has questioned whether there will be any serious disruptions, citing the fact that important suppliers like Consol and Arch have not filed for force majeure.

However, worries about possible coal shipping delays and the resulting pressure on India’s energy industry continue. India depends heavily on imported coal, so any hiccups in the world’s supply chain might have a big impact.

According to the Indian trader, it will take the authorities six to seven days to evaluate the amount of debris left over from the incident and the available draft. If the draft is low, there may be an issue. There won’t be any ship movement at this time because it can take the authorities ten to fifteen days to remove the debris.

An important factor in supplying India’s energy needs is the port of Baltimore, which is a major loading point for US thermal coal exports. Alternative routes and logistical preparations must be investigated in light of the stoppage of traffic via Baltimore Harbor to guarantee a consistent supply of coal to India.

Although some market players expect short-term price swings in reaction to the occurrence, others think that if the waterway is cleared in a fair amount of time, the overall effect on coal prices may be minimal. However, things are still changing, and Indian players are keeping a careful eye on things to see how they might affect the energy markets.

Indian importers of pet coke and coal are preparing for possible supply chain interruptions as authorities attempt to evaluate and remove the debris from the fallen bridge. India’s energy security is at risk, so efforts are being made to identify alternate ways to lessen the damage that the collapse of the Baltimore Bridge will do to the nation’s energy infrastructure.

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