01:53 PM EDT, 03/27/2024 (MT Newswires) -- The collapse of the Francis Scott Key Bridge in Baltimore on Tuesday is expected to have a significant impact on shipping on the East Coast, with some estimates suggesting an economic loss of $217 million every day the port is closed as well as the impact to related jobs, Stifel said in note Wednesday.

"Supply chains are back in focus after a massive cargo ship collided with the 1.6-mile Francis Scott Key Bridge in Baltimore yesterday, leading to the presumed tragic loss of life and the indefinite suspension of shipping traffic through the port," Stifel economist Lauren Henderson wrote. "As officials continue to search for answers, the immediate economic fallout is evident."

While ships can be rerouted to other ports, the loss of the bridge will have a significant impact on trucking through the area and could have an inflation effect on goods transported by ships and trucks through the impacted area.

"(T)he rerouting of cargo ships could have inflationary implications at a time when consumers and policy makers alike are looking for a continued, sustainable downward trend in price pressures," Henderson said.

Price hikes would complicate the Federal Reserve's expected path of rate reductions this year. Fed Governor Christopher Waller is set to speak at 6 pm ET Wednesday, followed by Fed Chair Jerome Powell on Friday. Both are almost certain to be asked about the impact of the bridge collapse on the economy and inflation.