Cruise line Carnival (CCL) has warned that the collapse of the Francis Scott Key Bridge in Baltimore could affect its revenue this year.
“Given the timing of yesterday's events in Baltimore and the temporary change in homeport, our guidance includes a current estimate of up to $10 million in both adjusted EBITDA and adjusted net income for the full year 2024. impact,” the company's first-quarter earnings said. said the release.
The company announced it will temporarily relocate its Baltimore operations to Norfolk, Virginia. The Carnival Legend, which was scheduled to return from its voyage on Sunday, will be rerouted.
The bridge collapse has forced a number of reroutes as ship traffic to and from the Port of Baltimore is suspended until further notice.
“Currently, we have over 800 containers bound for the Port of Baltimore and we are working with shipping lines to determine where they will be unloaded,” Flexport CEO Ryan Petersen told Yahoo Finance on Wednesday. “We are considering it,” he said.
“It's a bit of a hectic situation working on behalf of customers right now,” he added. His company had two containers on board the cargo ship that hit the bridge, but he doesn't expect them to take months to reach their destination.
“Norfolk probably has enough capacity.” [port] “We're moving to New York and even Philadelphia to catch up from Baltimore, but that's a lot to move overnight,” Petersen said.
Attacks on ships in the Red Sea, a major waterway used for shipping traffic from Asia to Northern Europe, have already disrupted maritime activity this year.
Congestion near the Panama Canal due to low water levels is also prompting route changes, which typically increase shipping costs.
“Costs could increase significantly,” Petersen said, referring to rerouting from the Port of Baltimore.
“It will depend on how much volume we see moving to the West Coast and how much of an impact that will have. Higher transport prices are directly reflected in the prices people pay for goods every day,” he added. Ta.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow her on X @ines_ferre.
