Baltimore bridge disaster - Impact on ethanol and biofuel

USAgNet - 03/28/2024

The recent collapse of the Francis Scott Key bridge in Baltimore has sparked concerns among suppliers and marketers, particularly regarding ethanol availability. The primary mode of ethanol transportation to the region, barges, faces uncertainty as barge traffic to the port remains suspended.

While most refined products in Baltimore are transported via the Colonial Pipeline, ensuring adequate inventories of gasoline and diesel, ethanol presents a unique challenge due to its reliance on barge transportation. With no clear timeline for the resumption of barge traffic, the supply chain for ethanol, premium gas, and biofuel could be significantly disrupted.

Although the port primarily handles container vessels and chemicals, occasional offshore fuel shipments supplement the region's supply. High RVP gasoline barges from other Northeastern locations could provide a temporary solution for high-volume buyers, helping mitigate the impact of the bridge collapse on fuel availability.

Recent data on port arrivals highlight brisk rates for chemicals like urea ammonium nitrate and roofing flux, overshadowing quantities of asphalt and biodiesel. Some finished gasoline barrels are sourced from neighboring states like New Jersey and Delaware, indicating potential alternatives for fuel procurement.

The aftermath of the bridge collapse underscores the importance of diversified supply chains and contingency plans in maintaining fuel availability during unexpected disruptions. Continued monitoring and collaborative efforts among stakeholders are crucial in managing the situation and mitigating its impact on the agricultural and transportation sectors.

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