Baltimore bridge collapse could cost Carnival $10 million this year

Cruise operator Carnival (CCL) warned that the collapse of the Francis Scott Key Bridge in Baltimore could impact its bottom line this year.

“Given the timing of yesterday's event in Baltimore and the temporary change in homeport, our guidance does not include the current estimated impact of up to $10 million on both adjusted EBITDA and adjusted net income for the full year 2024,” the company's first quarter earnings release said.

The company announced it will temporarily move its Baltimore operations to Norfolk, Va. The Carnival Legend scheduled to return from a voyage on Sunday will be rerouted.

The bridge collapse has prompted a slew of reroutes as vessel traffic into and out of the Port of Baltimore is suspended until further notice.

“We have more than 800 containers bound for the Port of Baltimore right now and we’re working with the ocean carriers to figure out where those are going to get dropped off,” Flexport CEO Ryan Petersen told Yahoo Finance on Wednesday.

“It’s kind of a scramble to work on behalf of the customers right now,” he added. His company had two containers on the cargo ship that struck the bridge, and he doesn’t expect those to reach their destination for months.

"There is probably enough capacity in Norfolk and New York and even in Philadelphia to pick up the slack from Baltimore, but it's a lot of volume to move overnight," said Petersen.

A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after the ship hit the bridge Wednesday, March 27, 2024, in Baltimore, Md. (AP Photo/Steve Helber) — A cargo ship is stuck under part of the Francis Scott Key Bridge after colliding with it on Wednesday, March 27, 2024, in Baltimore, Md. (ASSOCIATED PRESS)

Sea-bound operations have already been disrupted this year due to attacks on vessels in the Red Sea, a major waterway used for vessel traffic from Asia to Northern Europe.

Congestions near the Panama Canal due to low water levels have also prompted reroutes, which typically increase transport expenses.

"It could be a big increase in costs," said Petersen in reference to reroutes away from the Port of Baltimore.

"It will depend how much volume we see shifted to the west coast, how much impact that is. A high price of shipping flows directly into the price of goods people pay every day," he added.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.