Car Prices Expected to Rise After Baltimore Bridge Collapse

The impact will likely become apparent in the inflation report for April or May.

Part of the steel frame of the Francis Scott Key Bridge sits on top of the container ship Dali after the bridge collapsed in Baltimore, Maryland, on March 26, 2024. Roberto Schmidt/AFP via Getty Images

The bridge collapse in the Port of Baltimore has the potential to create a domino effect in the auto industry, resulting in inventory shortages and price increases. The incident is expected to make a dent in the broader economy as well.

According to Michel Leonard, chief economist and data scientist at the Insurance Information Institute, the car sector will see a significant disruption similar to that seen during the COVID-19 pandemic, albeit on a smaller scale.