Carnival says Baltimore bridge collapse could bring up to $10M earnings impact in 2024

Carnival Corporation said Wednesday the Francis Scott Key Bridge collapse in Maryland could have a negative effect on its full-year earnings.

The cruise line operator told shareholders it could see a “current estimated impact of up to $10 million on both adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] and adjusted net income for the full year 2024.”

The bridge fell into the Patapsco River near Baltimore early Tuesday morning. Its collapse stemmed from a large container ship striking one of its support columns.

The nearby Port of Baltimore has experienced some disruptions due to the Francis Scott Key Bridge incident, halting vessel traffic “until further notice” though it said Tuesday. “Trucks are being processed within our marine terminals” still. 

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Carnival, which sails out of the Baltimore port for certain cruises, said it did not incorporate the $10 million estimated impact in its 2024 outlook “given the timing of yesterday’s event in Baltimore and the temporary change in homeport.” It also reported seeing “record” first quarter revenues of $5.4 billion and a smaller net loss of $214 million.

Just a day earlier, the company temporarily switched the homeport of its Carnival Legend ship to Norfolk, Virginia, amid the ongoing situation in Baltimore.

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“Fortunately, our teams quickly secured a temporary homeport in Norfolk for as long as it’s needed, which should help to minimize operational changes,” CEO Josh Weinstein told analysts and investors on Tuesday. “We look forward to getting back to our home in Baltimore as soon as possible.”

The cruise terminal in the Port of Baltimore served over 444,000 people taking cruises operated by companies like Carnival, Norwegian and Royal Caribbean last year, according to the Maryland State Archives.

The port also facilitates quite a bit of trade. In 2023, for example, a record-setting 52.3 million tons of foreign cargo came through it, the Maryland governor’s office said.

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The Maryland governor’s office has also said no other U.S. port handled as much volume of “autos and light trucks, roll on/off heavy farm and construction machinery, imported sugar, and imported gypsum” as the Port of Baltimore last year.