Insurance analysts say Tuesday's bridge collapse in Baltimore in the United States will likely put upward pressure on marine insurance rates globally.
They argue that Baltimore's Francis Scott Key Bridge collapse could cost insurers billions of dollars in claims, with one putting it at as much as $4 billion, which would make the tragedy a record shipping insurance loss.
Four persons are still missing after a collision with a Singapore-flagged container ship destroyed the landmark bridge on Tuesday, forcing the closure of one of the busiest US ports.
With little clarity on when the Port of Baltimore will re-open, insurers and analysts are now assessing the likely losses to be borne by underwriters across several product lines, including property, cargo, marine, liability, trade credit and contingent business interruption.
Marcos Alvarez, managing director for global insurance ratings at Morningstar DBRS says "Depending on the length of the blockage and the nature of the business interruption coverage for the Port of Baltimore, insured losses could total between $2 billion and $4 billion".
Initial estimates of the cost of rebuilding the bridge, which is likely to be paid by the federal government, are at $600 million.
Estimates suggest the closure of the port for just one month could see a total loss of $28 million for the state of Maryland.
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