Baltimore Bridge Collapse Sparks Citric Acid Price Surge: Navigating Supply Chain Turbulence

In the month of March, the Citric Acid market witnessed a notable surge in prices, with indications pointing towards a continued upward trajectory in the approaching month of April. This trend for Citric Acid is not confined to importing regions alone but has extended to exporting regions, including the United States. Among the primary factors fueling this surge in Citric Acid prices is the recent collapse of the Francis Scott Key Bridge in Baltimore on March 26, having far-reaching implications across the supply chain.

The collapse of the Francis Scott Key Bridge occurred in the early hours of Tuesday, sending  shockwaves through the maritime industry. Consequently, the Port of Baltimore has been forced into closure, disrupting trade activities and supply chains for several products, including Citric Acid.

In the short term, businesses and consumers along the East Coast, including the port of New York, are bracing for increased costs of products, including Citric Acid, as a result of the Baltimore port closure. Logistics services, warehouses, and trucking companies are confronted with the challenge of rerouting operations while authorities work on bridge reconstruction and port restoration efforts, which will have a long-term impact on the prices of commodities, including Citric Acid.

Moreover, due to the closure of the Baltimore port, ports on the West Coast, particularly Los Angeles and Long Beach, are expected to witness heightened activity levels in the longer term. As a result, the ports of Los Angeles and Long Beach are poised to handle increased volumes, leading to a ripple effect across associated industries, including trucking, warehousing, and rail systems. The diversion of vessels and scarcity of vessel space further exacerbate supply chain disruptions, potentially prompting shippers to reconsider import strategies of various products, including Citric Acid in the medium term.

The closure of the Baltimore port is anticipated to exert upward pressure on product costs, including Citric Acid, reflecting the increased logistical challenges and supply chain constraints. Furthermore, the shortage of vessel space and disruptions in shipping routes may prolong the recovery period, with experts suggesting a timeframe of several months to over a year for the Port of Baltimore to resume full operations.

In addition to the bridge collapse, another contributing factor to the escalating prices of Citric Acid is the rising cost of raw material corn. Market analysts anticipate continued upward pressure on corn prices in the foreseeable future, further bolstering production costs and consequently supporting higher Citric Acid prices. According to the analysis of ChemAnalyst experts, the Citric Acid market is grappling with multiple challenges, with the Baltimore bridge collapse serving as a significant catalyst for price surges.