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Logistics Terms Port of Baltimore

Registration dateAPR 12, 2024

Port of Baltimore
The Port of Baltimore in the United States is a port that plays an important role in the global logistics network and is of strategic importance in maritime trade. The Baltimore port recently made headlines when a container ship collided with the Francis Scott Key Bridge. In this blog, we look at the history of the Port of Baltimore and its role and importance in the U.S. and global economies.
  1. 1) History of Port of Baltimore

    The Port of Baltimore, officially established in 1706 near the burgeoning town of Baltimore, Maryland, has a rich history that mirrors the development of the United States itself. Initially designated by the Maryland colonial assembly to serve as an official port of entry for the tobacco trade, its strategic location on the Patapsco River, near the Chesapeake Bay, made it an ideal point for trade not just domestically but with the Caribbean and Europe as well.

    As Baltimore grew, so did the port's significance, with the 18th and early 19th centuries seeing a boom in commerce, especially in the flour trade. The construction of the Baltimore and Ohio Railroad in 1828 further cemented the port's role by linking it with the expanding western territories of the U.S., thus facilitating the transport of a variety of goods, including coal, grain, and later, steel.

    The 20th century brought about significant changes with the introduction of containerized cargo, revolutionizing the logistics and shipping industries. The Port of Baltimore was quick to adapt, opening the Dundalk Marine Terminal in 1963 to specifically handle container ships. This move positioned the port as a key player in international trade, capable of accommodating some of the largest cargo ships in the world.

    Throughout its history, the Port of Baltimore has seen periods of both prosperity and challenge, including labor strikes, economic recessions, and competition from other ports. Despite these obstacles, the port has continued to expand and modernize, investing in facilities to handle not just containerized goods but also automobiles, bulk commodities, and break-bulk cargo.

    Today, the Port of Baltimore is recognized for its strategic geographic location, which offers one of the quickest routes from the Midwest to the Atlantic, and its efficiency in handling a diverse range of cargo. It remains a critical economic engine for the region, supporting thousands of jobs and contributing significantly to the local and national economy. With ongoing investments in infrastructure and technology, the Port of Baltimore is well-positioned to continue its legacy as a vital link in the global supply chain.

    Port of Baltimore Image (Source: Gettyimagesbank)
  2. 2) Handling Cargo

    Autos Cargo
    The Port of Baltimore's preeminence in automobile handling and services in the U.S. is deeply rooted in its history and strategic advantages. The landmark arrival of the first Volkswagen Beetle in 1963 marked the beginning of the port's longstanding relationship with the automotive industry, setting the stage for its evolution into the leading automobile port in the country.

    Handling 847,158 autos and light trucks in 2023 and maintaining its status as the top U.S. port for such shipments for the thirteenth consecutive year is a testament to its operational efficiency, strategic location, and the depth of its expertise in automotive logistics. The geographical advantage played a major role in the Baltimore Port's prominence in the automobile industry. Its Mid-Atlantic inland location, 150 miles further inland than any other Mid-Atlantic port, offers a significant logistical edge, effectively reducing transportation times and costs from manufacturer to market. This strategic positioning is especially beneficial for exports.

    For imports, the Port of Baltimore's proximity to the densely populated and economically vibrant Baltimore-Washington area ensures that vehicles quickly reach dealers and consumers. This direct access to one of the nation's largest and wealthiest consumer markets is a boon for automotive manufacturers and distributors, facilitating rapid distribution and sales.

    The port's connectivity is further enhanced by its access to major interstates, I-95 and I-70, and on-dock rail service provided by two Class 1 rail carriers, Norfolk Southern and CSX. These connections offer seamless, efficient transport links to the Midwest and beyond. Moreover, the Port of Baltimore's capability to accommodate all RoRo (Roll-on/Roll-off) carriers underlines its comprehensive service offerings, ensuring that any vehicle, regardless of its destination, can be efficiently processed and transported.

    Port of Baltimore Image (Source: Gettyimagesbank)
  3. Break Bulk - Coal
    Handling one-fourth of the country's coal exports places the Port of Baltimore in a pivotal role within the U.S. coal export market, highlighting its significant contribution to the nation's energy sector. Coal, as a key commodity in global energy markets, requires specialized handling and storage facilities due to its bulk nature and environmental considerations. The Port of Baltimore's ability to manage such a substantial portion of U.S. coal exports speaks to its robust infrastructure, which includes advanced bulk handling systems, dedicated terminals, and efficient logistics solutions that ensure the safe, environmentally compliant, and cost-effective movement of coal from mines to markets.

    Moreover, the port's strategic geographical location, combined with its deep-water berths and access to major rail networks, including direct connections to coal-producing regions in Appalachia, makes it an ideal export point for reaching international markets. This logistical advantage is critical for maintaining the competitiveness of U.S. coal in the global market, especially in regions such as Europe, Asia, and South America, where demand for coal for power generation and steel production remains high.

    Project Cargo
    The Port of Baltimore's capabilities in handling specialized cargo underscore its critical role in supporting the infrastructure and development projects that fuel global progress and economic growth. The port's expertise in managing complex cargo, such as machinery needed for constructing automobile manufacturing plants, power plants, transit systems, airports, and wind farms, highlights its position as a key logistical hub capable of meeting the demands of intricate and large-scale projects.

    This logistical prowess is further amplified by the port's extensive network of approximately 250 trucking companies, including many specialized heavy haulers. This network ensures that any type of cargo can be efficiently transported from the port's piers to any location across the United States and Canada. Such comprehensive trucking services facilitate seamless door-to-door delivery of critical components for major projects, ensuring timely and safe transportation of goods that are often oversized, heavy, or require special handling.

    The provision of on-dock rail service by two Class 1 rail carriers, Norfolk Southern and CSX, with direct connections to the Midwest, enhances the Port of Baltimore's connectivity and efficiency. This direct rail access enables the rapid and economical movement of goods between the port and inland destinations, further solidifying the port's strategic importance to supply chains and its ability to support a wide range of industrial and development projects across the country.


    By combining specialized cargo handling capabilities with a robust network of trucking services and on-dock rail connections, the Port of Baltimore stands as a pivotal player in the logistics and transportation industry. It not only serves the needs of traditional maritime trade but also plays a crucial role in facilitating the construction and development of key infrastructure and renewable energy projects worldwide, thereby contributing significantly to economic development and sustainability efforts.

  4. 3) Terminals

    The Port of Baltimore's operational capabilities and infrastructure are exemplified by its diverse array of public and private terminals, each specialized to handle specific types of cargo efficiently. There are a total of 5 public terminals and 12 private terminals. Let’s look at the characteristics of public ternimals.

    1. Dundalk Marine Terminal
    As a sprawling facility, Dundalk Marine Terminal is adept at managing a variety of cargo types. Its versatility is evident in its ability to accommodate containers, break-bulk, wood pulp, Ro/Ro (roll-on/roll-off), autos, project cargo, and farm and construction equipment across 13 berths with varying drafts. The terminal's substantial indoor and outdoor storage capacities, including specialized areas for containers, break-bulk, automobiles, and Ro/Ro cargo, make it a critical component of the port's operations. The diversity in berth depths allows the terminal to handle vessels of different sizes, enhancing its capacity to facilitate global trade efficiently.

    2. Seagirt Marine Terminal
    Focused primarily on container handling, the Seagirt Marine Terminal is equipped with advanced crane technology, including eight super post-Panamax and seven post-Panamax cranes, alongside 22 rubber-tired gantry cranes. This facility's deep drafts at its four berths accommodate larger container ships, a necessity in today's era of mega-vessels. The terminal's significant outside storage area supports its role as a major hub for containerized cargo, facilitating the smooth transition of goods from ship to shore to market.

    3. Fairfield Marine Automobile Terminal
    Specializing in Ro/Ro and automobile logistics, this terminal has two berths with significantly different drafts, catering to a wide range of vessel sizes. Its substantial auto processing buildings underscore the terminal's role in the automotive supply chain, from import to preparation for market. The facility's focus on Ro/Ro and autos aligns with Baltimore's status as a leading port for automobile handling in the U.S., further emphasizing its strategic importance to the automotive industry.

    4. North Locust Point
    This terminal, with its five finger piers and a draft of 34 feet (10.4 meters), is adept at handling a diverse mix of cargo including wood pulp, lumber, latex, steel, paper, and containers. The availability of 180,000 square feet (16,723 square meters) of indoor storage and 19 acres (8 hectares) of open storage space facilitates the efficient processing and temporary holding of these goods. The terminal's infrastructure and layout are particularly suited to the import and export of bulk and break-bulk commodities, sectors in which the port has traditionally excelled.

    5. South Locust Point
    Specializing in forest products, South Locust Point operates three general cargo berths with a depth of 36 feet (11 meters), making it a vital node for the import and export of goods like paper and wood products. The terminal's significant indoor storage capacity, amounting to 935,000 square feet (86,864 square meters), highlights its role in accommodating large volumes of sensitive commodities that require protection from the elements. The facility's focus on forest products underscores the Port of Baltimore's strategic emphasis on handling specific market segments effectively, leveraging its infrastructure to meet the demands of both domestic and international trade partners.

    Port of Baltimore Image (Source: Gettyimagesbank)
  5. 4) Recent container ship collision with Baltimore Bridge

    1. Accident Overview
    In the early morning of March 26, Maersk's 9,971 TEU container ship Dali, which departed Baltimore Port and was heading to Colombo, Sri Lanka, collided with the Francis Scott Key Bridge, causing an accident that caused the bridge to collapse. The accident appears to have been caused by loss of propulsion due to mechanical failure of the vessel. As a result, ship traffic at the Port of Baltimore was halted, and the port was closed indefinitely, making it unclear when it would reopen.

    This incident is expected to have a significant impact on logistics and transportation networks in Baltimore and the entire East Coast of the United States. The Port of Baltimore is one of the major ports in the United States that handles a variety of cargo, including automobiles, bulk cargo, and containers, and the damage caused by this accident is expected to go beyond simple physical damage and have significant ripple effects at the economic and logistics level.

    At present, it is difficult to accurately predict how long it will take to clean up the accident and restore the bridge, and what the resulting economic loss will be. Authorities are doing their best to investigate and recover from the incident, and information will be continuously updated. Continued attention is needed regarding the impact of this incident on logistics and transportation systems not only in Baltimore but also in the broader region.

    Port of Baltimore Image (Source: Gettyimagesbank)

    2. Impact on logistics supply chain
    The closure of the Port of Baltimore and the Francis Scott Key Bridge will cause significant disruption to shipping logistics in the eastern United States, which is feared to have a knock-on effect on the broader supply chain. In particular, the Port of Baltimore is one of the ports in the United States that exports and imports the most automobiles, and the impact of this accident is expected to have a major blow to the automobile industry. It is known that major car manufacturers such as BMW, Volkswagen, Ford and GM have already started to reorganize their transportation routes. This readjustment is likely to lead to transportation delays and increased costs.

    In addition, countries such as India that depend on the United States for a certain portion of their coal imports are also expected to have an impact. The disruption of coal exports through the Port of Baltimore could have particular implications for India's energy supply chain.

    Shipping companies are considering rerouting the Port of Baltimore to nearby alternative ports such as New York, Newark and Norfolk, but such changes could lead to additional bottlenecks and congestion. Concentration of logistics to alternative ports will place significant pressure on port operations in the region and may result in reduced efficiency of the overall maritime transport system.

    3. Predictions
    In the near term, the closure of the Port of Baltimore and the collapse of the Francis Scott Key Bridge will result in supply chain disruptions, including diversion to alternative ports, increased congestion at ports, and higher transportation costs. These changes are expected to be resolved at a manageable level as a local issue on the East Coast of the United States and therefore have limited impact on the overall economy. In other words, despite short-term supply chain disruptions and rising costs, this appears to be a surmountable problem.

    However, if the reopening of the Port of Baltimore is delayed longer than initially expected, this could put additional strain on the global supply chain, which is already facing a variety of challenges. In particular, the global pandemic could have a greater impact on the already unstable global economy, which could lead to increased logistics costs, delayed delivery times, and ultimately higher consumer prices.

    In the long term, this incident could serve as an opportunity to strengthen supply chain resilience and flexibility. Through this incident, companies will be able to re-aware of the importance of risk diversification and prepare for similar incidents that may occur in the future by developing various logistics routes and supply chain strategies.

    In conclusion, although the Baltimore Port accident will have some short-term impacts, it is expected that the economic impact can be minimized with appropriate management and response. However, we hope that this incident will serve as an opportunity to strengthen the resilience and flexibility of the global supply chain.