On March 26 in Baltimore, the Francis Scott Key Bridge collapsed, leading to the shutdown of vessel traffic in and out of the harbor. However, a Federal Reserve report from April 17 revealed that there have been no widespread price increases as a direct result of this incident.
The collapse has caused shipping delays and businesses in the area are concerned about the potential for an extended shutdown. This could lead to increased costs and longer lead times for various industries. Port officials have diverted ships to other East Coast ports following the collapse, with a third temporary shipping channel opening on the northeast side of the fallen bridge to allow for about 15% of pre-collapse commercial activity to resume.
Despite disruptions like this one and incidents such as those in the Red Sea, widespread price increases have not been reported. The Federal Reserve’s Beige Book report gathers anecdotal reports from key business contacts, economists, market experts, and other sources to provide an overview of economic conditions within each district.