The recent collapse of a significant bridge in Baltimore has led to disruptions in pulp imports into the United States, affecting some of the largest exporters of this essential component in toilet paper production.
Following the incident, where a ship collided with the bridge resulting in six fatalities, the port of Baltimore, a critical entry point for top pulp producers like Suzano SA and Eldorado Brasil Celulose SA, was shut down. This port has been responsible for approximately 6% of the U.S.'s pulp imports, translating to over 3 million tons in 2023 alone.
Efforts to reroute shipments to alternate ports are underway, but this is expected to cause delays in other major hubs, including Philadelphia, New York, and Norfolk, Virginia. This situation adds to the already existing challenges in the pulp industry, which include mill stoppages and geopolitical tensions affecting shipments.
Global pulp prices are on the rise due to these disruptions. Suzano has reported lower-than-expected inventories in major markets because of shipping backlogs attributed to missile attacks by Yemen-based Houthi militants in the Red Sea. Additionally, recent workers' strikes in Finland have led to mill stoppages, further straining the supply chain. Analysts at investment bank Itau BBA predict that average pulp prices could reach up to $670 per metric ton this year, up from around $600 a ton last year.
