Shipping and Logistics
Hurricane Dorian Impacts Ports and Shipping
Written by Sandy Williams
September 5, 2019
Hurricanes are a yearly occurrence for the southern U.S., taking huge tolls on property and lives and causing major disruption for the shipping industry. Hurricane Dorian, still churning its way up the East Coast, is the latest example.
In preparation for Hurricane Dorian, Florida manufacturers rushed to get goods shipped North and out of flood zone areas. On Aug. 23, before Dorian was classified as a hurricane, demand for inbound trucks to Florida can be seen in the first map below, prepared by analysts at DAT. The pink areas indicate demand for inbound trucks with dark red indicating higher demand. Once Dorian was upgraded to hurricane status on Aug. 29, the map shows a dramatic increase in demand for the region.
Spot prices for trucking are affected in a similar fashion, according to DAT—increasing as the tropical storm is upgraded to hurricane status.
Safety and proactive precautions are prioritized in dangerous weather events. As Dorian pummeled the Bahamas and sent high winds and rain to Florida, trucking firms from Miami northward closed down operations to wait out the worst of the storm.
As the storm moves on, more trucks will be needed to bring in food shipments, fuel and repair supplies to aid in the recovery efforts. Hurricanes Harvey and Irma resulted in a tight truck capacity in the months following the storms. JOC.com anticipates less damage from Dorian as long as the storm remains on its current path just off the East Coast. The result should be less siphoning off of truck capacity in the transportation market.
The Florida East Coast Railroad suspended north and southbound service on Aug. 31. Norfolk Southern and CSX announced delays and preparations for any repairs that may be necessary from hurricane damage.
Ports are especially vulnerable to hurricanes for obvious reasons. Storm surges and high winds can destroy docks, damage equipment and vessels, and topple stacks of shipping containers. Ports in southern Florida closed on Monday.
The Georgia Ports Authority crews were tying down cranes ahead of the storm and getting cargo ships out of the port on Labor Day. Ports of Savannah and New Brunswick suspended operations until Friday.
Further up the East Coast, South Carolina has closed ports in Charleston and Georgetown until Wednesday.
Crews at all the ports will be minimal as Dorian passes. Georgia Governor Brian Kemp stressed the importance of safety at a news conference in Savannah on Monday.
“We’re certainly concerned about potential impacts of Hurricane Dorian on this vital asset,” said Kemp. “It is not worth risking your life. Your possessions can be replaced, your life and your family cannot.”
Nucor Berkeley which is located just outside of Charlestown, South Carolina ceased operations today (Thursday) due to the storm. The mill advised SMU they would continue operations as soon as the storm passes and it is safe to resume.
Sandy Williams
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