On March 26, 2024, the Francis Scott Key Bridge, a major transportation artery connecting Maryland and Virginia, collapsed. The collapse caused significant traffic disruptions and raised concerns about the fragility of our nation's infrastructure and its impact on supply chains.

This blog post will examine the supply chain disruptions caused by the collapse. We will also provide insights for supply chain managers. Finally, we will look at how to mitigate the impact of future infrastructure failures and other disruptions.

The Impact of the Bridge Collapse on Supply Chains

The Francis Scott Key Bridge collapse significantly impacted supply chains. The collapse affected the city, the state, the region, and beyond.

According to Maryland Port Administration data, the Port of Baltimore is the busiest U.S. port for handling imports and exports. In 2023, it handled 847,000 cars and light trucks.

The bridge's closure caused major delays for businesses transporting goods between Maryland and Virginia. At this time, the projected date for the Port of Baltimore's reopening is unknown. Regrettably, the bridge’s collapse disrupted supply chains in several other ways.

Delays and increased transit times.

The bridge closure caused delivery delays, resulting in longer alternate routes for trucks. The bridge closure has doubled travel time from Baltimore to Washington, D.C. This has led to delays in the delivery of goods to businesses and consumers.

In addition, much of the traffic is being rerouted to other East Coast Marine terminals.

Increased transportation costs.

The longer transit times also resulted in increased transportation costs for businesses. Trucking companies usually charge based on the distance traveled. That means longer routes come with higher costs. Consider the example of a truck that would cost $500 to travel from Baltimore to Washington, D.C. That same journey now costs $700 or more due to the closure.

Disruptions to just-in-time (JIT) inventory systems.

Many businesses depend on JIT inventory systems. JIT consists of minimal inventory and more frequent deliveries.

The bridge collapse disrupted JIT systems, leading to stock shortages. Here’s an example. A grocery store couldn't receive its daily fresh produce delivery from a Maryland supplier due to the bridge closure. This caused the grocery store to run out of fresh produce within a few days.

Loss of inventory and goods.

Besides delays and increased costs, the collapse also led to the loss of inventory and goods. The collapse damaged some trucks. Others faced delays so long that their perishable goods spoiled. 

For example, the closure caused several hours of delay for a truck carrying a load of fresh seafood. The seafood spoiled and had to be discarded by the time the truck arrived at its destination.

These are just a few of the specific ways the bridge collapse disrupted supply chains. The collapse highlights the importance of supply chain resilience and preparedness.

Lessons Learned for Supply Chain Managers

The Francis Scott Key Bridge collapse provides several important lessons. First, it highlights the importance of supply chain resilience and contingency planning. To mitigate the impact of disruptions, businesses must prepare and implement mitigation plans.

Second, the bridge’s collapse highlights the importance of diverse transportation options. Relying on a single bridge or supplier makes businesses more vulnerable to disruptions. Having multiple options allows businesses to reroute shipments and avoid delays quickly.

Third, the bridge collapse underscores the value of real-time visibility and communication. Real-time tracking of shipments and effective communication with suppliers is critical for businesses. The same applies to customers. This allows them to identify and respond to disruptions quickly.

Finally, the bridge collapse shows technology's role in mitigating supply chain disruptions. Technology streamlines processes, enhances efficiency, and offers real-time visibility. Technology investments can make supply chains more resilient and responsive to disruptions.

Supply chain managers can learn from the Francis Scott Key Bridge collapse. This will help businesses avoid costly losses and delays caused by disruptions.

Best Practices for Mitigating Supply Chain Disruptions

The bridge collapse offers lessons for supply chain managers to prevent future disruptions. These

steps include:

Develop and implement comprehensive contingency plans. Contingency plans should detail steps for business disruptions. These plans should include alternative transportation routes, backup suppliers, and communication protocols. A business may develop a contingency plan to mitigate the disruptions. For example, businesses can reroute shipments or change transportation modes.

Diversify transportation routes and suppliers. Businesses should avoid relying on a single bridge or a single supplier. By having multiple options, businesses can quickly reroute shipments and avoid delays. A business can diversify transportation routes through multiple bridges or highways. Or it can use a combination of trucking, rail, and air transportation. Supply chain managers have viable options available to them.

Investing in real-time visibility and communication systems. Businesses can track shipments and communicate effectively using real-time systems. This allows them to identify and respond to disruptions quickly. For instance, a business may use a real-time tracking system. That would enable it to monitor shipment locations and receive alerts for any delays.

Utilizing technology to automate processes and improve efficiency. Technology can automate processes, enhance efficiency, and provide real-time visibility. Businesses can enhance their supply chains by investing in technology. These investments increase their ability to handle disruptions. For example, a business might invest in a transportation management system (TMS). That would enable a business to optimize its routes and track shipments in real-time.

Besides these specific steps, businesses can also take a more general approach. Specifically, businesses can achieve supply chain resilience by focusing on the following principles:

Agility: Supply chains must be agile to adapt to demand and supply changes. This requires quickly rerouting shipments, changing suppliers, and adjusting production schedules.

Flexibility: Supply chains should manage various disruptions. That includes infrastructure failures, natural disasters, and economic downturns. This means having multiple suppliers, transportation routes, and production facilities.

Visibility: Supply chains require real-time visibility of inventory levels, shipment locations, and supplier performance. This allows businesses to identify and respond to disruptions quickly.

Best practices improve supply chain resilience and responsiveness. It helps avoid costly disruptions, delays, and losses.

Conclusion

The Key Bridge incident underscores the need for supply chain resilience. Businesses must be ready for disruptions and have mitigation plans in place. Supply chain managers can improve resilience and responsiveness by following best practices.

Governments also have a role in promoting supply chain resilience. Fortunately, governments have a variety of options. They can promote economic resilience by investing in infrastructure. They can diversify their supply chains. And they can incentivize businesses to adopt resilient practices.

By working together, businesses and governments can create more resilient supply chains. As disruptions occur, you'll be able to ensure access to necessary goods and services. And that reliability will translate into long-term loyalty.

Protect Your Supply Chain from Infrastructure Failures and Disruptions

The Francis Scott Key Bridge collapse is a stark reminder of the fragility of our infrastructure and its impact on supply chains. As a leading provider of supply chain solutions, American Global Logistics is committed to helping businesses mitigate the risks associated with infrastructure failures and other disruptions.

By partnering with American Global Logistics, you can:

• Develop comprehensive contingency plans to minimize the impact of disruptions
• Diversify your transportation routes and suppliers to ensure business continuity
• Invest in real-time visibility and communication systems to stay ahead of potential issues
• Leverage technology to automate processes and improve efficiency

Don't wait for a disruption to cripple your supply chain. Contact us today to learn how we can help you build a more resilient and responsive supply chain.

Together, we can ensure the uninterrupted flow of goods and services, even in the face of unexpected challenges.