Major Baltimore Bridge Collapse May Trigger Largest Marine Insurance Payout Ever

The collapse of a major Baltimore bridge following a collision with a cargo ship could result in the largest marine insurance payout in history, according to Lloyd’s of London chairman Bruce Carnegie-Brown.

Carnegie-Brown stated in an interview with CNBC on Thursday that the incident, which occurred in the early hours of Tuesday, is anticipated to lead to significant losses, potentially surpassing previous marine insurance claims. “We’re beginning to deploy resources in anticipation of this being a very substantial claim for the industry,” he added.

Tragically, six out of eight construction workers are presumed to have lost their lives in the accident. The Port of Baltimore has suspended vessel traffic, prompting concerns about the local economy. As the nation’s largest vehicle-handling port, handling up to $200 million in value daily, disruptions could have far-reaching effects.

Transportation Secretary Pete Buttigieg highlighted the significance of the port, emphasizing the potential impact on thousands of workers and over 140,000 individuals indirectly affected by disruptions, as warned by Maryland Governor Wes Moore.

Carnegie-Brown underscored the complex nature of the aftermath, citing claims for the ship, cargo, and the bridge itself, as well as the substantial “second-order impacts” on supply chains and business operations. He emphasized that these effects would take time to resolve.

In response to the crisis, a US government supply chain disruptions task force convened to assess the situation’s regional and national implications. The White House emphasized efforts to collaborate with industry stakeholders to mitigate disruptions and reroute shipments during the Port of Baltimore’s closure.

As investigations continue into the cause of the collapse, authorities are working diligently to address the immediate and long-term consequences of this devastating incident.