In an interview on Thursday, Lloyd’s of London chairman Bruce Carnegie-Brown stated that the collapse of a significant Baltimore bridge following a collision with a cargo ship might lead to the largest marine insurance payout ever.
Carnegie-Brown told CNBC, “It feels like a very substantial loss, potentially the largest-ever marine insured loss, but not outside parameters that we plan for.”
Preparations are being made for a significant insurance claim in response to this incident.
Tragically, six out of an eight-man construction crew are reportedly dead as a result of the accident, which occurred in the early hours of Tuesday.
Following the accident, vessel traffic at the Port of Baltimore has been halted, causing concerns about potential economic repercussions, particularly locally.
The Port of Baltimore is a key hub for vehicle handling in the United States, dealing with cars and heavy farm equipment, with daily shipments valued between $100 to $200 million, according to Transportation Secretary Pete Buttigieg.
Aside from the thousands of port workers, Maryland Governor Wes Moore warned in a previous interview that disruptions could indirectly affect over 140,000 individuals.
Carnegie-Brown mentioned that claims would be filed for the ship, cargo, and the bridge, but he pointed out that the secondary impacts would be significant.
He highlighted that many businesses would face interruptions, especially due to supply chain disruptions caused by ships being stranded in the port and those attempting to enter.
Managing these secondary effects will be a time-consuming process,” he remarked.
A task force overseeing supply chain disruptions met on Wednesday to address the potential impacts on regional and national supply chains resulting from the bridge collapse, as stated in a White House release.
Since the Francis Scott Key Bridge incident, the White House and federal agencies have been actively collaborating with industry stakeholders, ocean carriers, ports, and labor unions to mitigate the disruptions during the closure of the Port of Baltimore to ship traffic,” the White House emphasized.
AFP