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Port and terminal risks: Understanding allisions, costs, and supply chain impacts

Port and terminal allisions risk costly damage, business interruptions, and supply chain disruption; insurance and risk management are vital for protection.

01/06/2026 · 6 minute read

Accidents at ports and terminals are an unfortunate but frequent reality in maritime operations. While catastrophic incidents like the tragic allision between a containership and the Francis Scott Key Bridge capture headlines due to their dramatic consequences, the US maritime industry faces a steady stream of smaller, yet significant, allision events occurring regularly, sometimes weekly or monthly, across ports and waterways. These incidents pose multifaceted risks, potentially affecting not only the vessels involved but also port infrastructure, terminal operations, and the broader supply chain. Understanding these risks, their financial implications, and the ripple effects on commerce is critical for stakeholders across the maritime ecosystem.

The hidden toll: From major incidents to everyday disruptions

Allisions in ports and terminals take many forms — from large ocean-going vessels striking bridges or docks to barges breaking away and colliding with railroad bridges on inland waterways. While major incidents that can cause billions in damage are rare, smaller allisions occur with surprising frequency. Data from 2022 shows at least 2,400 allision incidents in US maritime ports and terminals, with around 50% occurring in port or terminal boundaries, including at berth, within interior facilities, at anchorage, or during harbor transit.

On the Mississippi River and Great Lakes, barge and tug operators frequently encounter allisions that disrupt rail and road traffic, damage infrastructure, and occasionally result in tragic accidents. One contributing factor is the operational strain on ports and terminals caused by increasing vessel sizes and growing cargo volumes, which elevate the risk of accidents and can complicate incident response. While many of these incidents may be smaller in scale, their cumulative impact represents a significant exposure for ports, terminals, and shipping companies alike.

Repair costs beyond the vessel

When an allision occurs, the immediate focus often centers on the vessel’s damage and repair costs. For instance, the Cuauhtémoc sail training ship took six months to repair after it hit the Brooklyn Bridge in May 2025.

However, the financial impact can extend far beyond the ship itself. Ports and terminals frequently sustain damage to critical infrastructure such as docks, cranes, rail lines, and pipelines. Repairing or replacing these assets can be costly and time-consuming.

For instance, gantry cranes — towering machines that load and unload containers — can cost tens of millions of dollars each, with replacement lead times stretching up to two years. Between 2019 to 2023, one insurance company reported 95 claims related to crane boom-to-ship allisions, with insured costs exceeding US$9 million.

Addressing damage to docks or rail infrastructure often requires coordination with multiple agencies, including the Army Corps of Engineers and local authorities, further complicating and delaying repairs. Moreover, allisions can cause environmental damage, such as oil spills or chemical leaks, which introduce additional cleanup costs and regulatory scrutiny. The complexity and high value of port assets mean repair costs can quickly escalate into multi-million-dollar claims.

The hidden costs of business interruptions

Physical damage is only part of the story. Allisions often lead to significant business interruptions that can cripple port and terminal operations. When a dock or crane is out of commission, or when waterways are blocked, the flow of cargo can slow or stop entirely. This disruption affects not only the shipping company involved but also the many other businesses that rely on timely port operations.

Terminal operators typically face lost income during downtime, but many standard property insurance policies only cover business interruption if there is direct physical damage to the insured property. If an allision blocks a waterway without damaging the terminal itself, operators may find themselves without coverage for lost revenue. This gap in protection can leave many exposed to substantial financial losses.

Additionally, delays in cargo movement can cascade through the supply chain, potentially affecting manufacturers, retailers, and consumers. For example, an allision blocking a major port can delay shipments of raw materials and finished goods, leading to production halts, inventory shortages, and increased costs throughout the supply chain.

The ripple effect of supply chain impacts

The broader supply chain impact of port and terminal allisions is often underestimated. Major US ports serve as critical nodes in trade networks — 69% of all goods traded by the US are transported via waterways, predominantly by seagoing vessels. In terms of value, ships carry over 41% of the total value of goods traded by the US, meaning any disruption can have far-reaching consequences.

The 2023 Baltimore bridge incident, for example, not only halted commercial traffic but also caused widespread delays in container shipments, affecting importers and exporters across multiple industries. Even smaller allisions can disrupt supply chains. When vessels collide with docks or cranes, or when barges break loose and block waterways, the resulting delays can ripple outward, potentially causing scheduling chaos for shipping lines, trucking companies, and rail operators. These disruptions can increase freight costs, reduce inventory availability, and ultimately impact consumers.

The human factor and legal complexities

Allisions can also bring human risks and legal challenges. Injuries to dockworkers, longshoremen, and vessel crews can result in workers’ compensation claims and litigation. Determining liability in these incidents is often complex, involving multiple parties such as vessel operators, terminal owners, and contractors.

Insurance claims related to allisions can take years to resolve due to disputes over responsibility and coverage. Vessel operators may seek to limit their liability under maritime law, while terminal operators pursue recovery through lawsuits or insurance claims. These legal disputes can add to the financial and operational burdens faced by all parties.

Mitigating port and terminal-related risks

Given the frequency and complexity of port and terminal allisions, effective risk management is paramount. Operators should seek out comprehensive insurance coverage that appropriately addresses not only physical damage but also business interruption and trade disruption.

Specialized insurance products, such as trade disruption coverage , can fill gaps left by traditional property policies. These products provide income protection when operations are halted due to incidents that do not cause direct physical damage to the insured property. While uptake of such coverage is limited, its value can be realized in the aftermath of an allision.

Additionally, maintaining robust safety protocols, investing in infrastructure resilience, and fostering strong communication with regulatory agencies can help mitigate allision risks and reduce the severity of incidents.

Protecting maritime operations: Insurance and risk strategies for allisions

The steady drumbeat of allision incidents at ports and terminals presents ongoing risks that can lead to substantial repair costs, business interruptions, and supply chain disruptions.

For shipping companies, terminal operators, and insurers, understanding these risks and preparing accordingly is essential. Comprehensive insurance solutions, proactive risk management, and awareness of the broader supply chain impacts, among other things, can help stakeholders better navigate the complexities of port and terminal allisions and safeguard their operations against future incidents.

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