Commodities soar as containers fall after stormsBy Peter A. Buxbaum, AJOTSurging breakbulk cargo imports have led the way as the Port of New Orleans continues on its road to recovery following the catastrophe of Hurricane Katrina nearly two years ago. New Orleans lost one-third of its container capacity in the storm and container figures continue to be depressed. But the port has managed to make up the difference with increased breakbulk shipments. Figures covering calendar year 2006 showed a 37% increase in breakbulk cargo imports, with overall cargo volumes exceeding the port’s five-year average by four percent. These increases helped to offset a 14% decline in container cargo, largely due to the loss of the port’s container terminal at France Road following Hurricane Katrina. The Port maintained its status as a top importer of steel, handling 4.15 million short tons, up 28% over the port’s five-year average and securing a top-three ranking nationally with a 15.5% market share. Overall, 2006 general cargo totaled 9.38 million short tons, up 20.7% compared to 2005. Coffee imports also rose over five percent in 2006, according to Gary LaGrange, President and CEO of the Port of New Orleans, in an exclusive interview with the American Journal of Transportation. Figures available for the first eight months of 2006 also show natural rubber imports increasing 22.6%, to 316,418 short tons and lumber rising three percent to 265,885 short tons. Iron and steel, natural rubber, forestry products, non-ferrous metals, and coffee are the port’s leading breakbulk commodities. Port revenues also continue to climb, despite lease concessions and subsidies offered by the port’s Board of Commissioners to storm-affected tenants in the wake of the hurricanes to help offset operating costs and aid in economic recoveries. However, port revenues have yet to climb back to pre-Katrina levels thanks to these expenditures. “We’ve been able to achieve these gains mostly due to our traditional breakbulk cargoes,” said LaGrange. “We lost about a third of our container capacity from the storm and container shipments reflect that. However, we’ve been able to make up the difference with increased breakbulk shipments.” “Thank God for breakbulk” The lion’s share of the breakbulk increases was attributable to steel imports, LaGrange noted. “Rubber, coffee, and wood products, such as plywood, also played a big role in the increases,” he added. “Thank God for breakbulk.” LaGrange attributed increased steel, rubber, and wood volumes to the overall strength of the global economy resulting in a high level of construction activity. “Activity in construction has been very good,” he said, “resulting in very low inventories for domestic steel. A lot of inventory in the United States had to be refilled.” Demand for other construction related supplies such as rubber and wood paralleled the increases in steel, according to LaGrange. “I can’t account for the increases in coffee exports given the higher fee differential as compared with other coffee ports,” he added, noting that volumes increased between five and six percent. “But we are still happy with the results.” As a result of the success the Port of New Orleans has experience with breakbulk cargoes, a “breakbulk strategy is our cornerstone right now,” said LaGrange. “We intend to continue in that vein. If the wheel’s not broken, why fix it?” LaGrange noted that New Orleans already boasts two and half miles of wharf devoted to breakbulk operations, “the largest public breakbulk wharf in the world,” he said. “It takes a lot to fill that up,” he added. “At first blush it looks full, but by implementing some efficiencies” the port can increase its breakbulk capacity. These efficiencies, according to LaGrange, include stacking and stowing practices, as well as the “logistics of getting in and out.” The port’s breakbulk transit sheds will serve the port well for the next three or four years after which capacity will need to be beefed up.