When the Dali cargo ship lost power and struck the Francis Scott Key bridge, it was ruled an avoidable accident — one that tragically claimed the lives of six construction workers. It will be several months before the reason for the incident is found. Currently, one safety board is examining data from the ship’s electrical system, while others are exploring the possibility of adulterated fuel.
Although maritime collisions are extremely rare, power loss and engine failure from fuel impurities occur more frequently. The Wall Street Journal reports that contamination has been the cause of several blackouts in recent years — described by one former captain as a “malaise” in the shipping industry. After one vessel lost power and was forced to drop anchor last summer, the incident report noted that “poor fuel quality caused the main engine to fail and auxiliary engines to wear down.”
The Journal explains that this is often the result of suppliers tampering with oil to pad profits. One way to do this is with the once-popular “cappuccino effect,” which involves pumping fuel into a ship’s tank with compressed air. This creates a layer of foam such that, when the fuel is measured for volume, the foam stands a few inches higher than the liquid. Suppliers might also mix shipping fuel with other cheaper substances, including car lubricants, paraffin or industrial waste. Thankfully, this practice is not as common as it once was, but ship owners say it does still happen at some ports. For instance, about 80 ships in Singapore reported problems with their engines after receiving tainted fuel in 2022, the Journal notes.
Because of Baltimore’s importance as an international shipping port, disruptions to the supply chain were immediate — and the fallout is still reverberating. Supply Chain Dive reports that Norfolk Southern and CSX are deploying additional train capacity to combat freight congestion: Norfolk Southern launched a dedicated intermodal service between the New York/New Jersey and Baltimore ports, and CSX is leveraging partnerships with steamship lines to ensure continuity and move diverted containers from the impacted areas.
CNBC states that it will take weeks to remove all the shipping containers from the Dali, then the ship itself will need to be rescued. Experts estimate the port will once again be accessible by the end of May.
Supply chains getting stronger
Despite ongoing challenges, supply chain stability is showing tremendous improvement and strength overall, according to a new stability index from ASCM and KPMG. Advancements stem from nearshoring efforts in Mexico and Canada, a return to just-in-time inventory strategies, a slight easing of talent competition, and other traditional response tactics. Significant challenges to geopolitics and volume fluctuations are still concerns, but special attention to inventory optimization, automation and digitization will distinguish leading companies from their counterparts.
The Dali cargo ship accident highlights the importance of establishing a robust safety net at supply chain organizations of all kinds. This is where the stability index comes in as a valuable tool for understanding and achieving resilience. Delve into the index to gain proven strategies for building a more robust and adaptable network.
