December 03, 2008

Lower steel imports in US to hit top line of New Orleans port

AP reported that reduction in steel imports into US is hurting the Port of New Orleans, which is seeing a big drop in revenue as a result. The port budget for the year that began July 1st 2007 was based on expected revenue of USD 40.1 million from terminal operations and other maritime activities. But actual revenues for the year will be closer to USD 36.4 million or 9% short of projections.

Mr H Daniel Hughes chairman of the Dock Board at the port's monthly Dock Board meeting said that "This is a direct result of problems with steel." He added that a weak dollar and frenzied buying in 2006 that left surpluses in domestic steel warehouses has hurt steel imports.

The trend was more pronounced at the Port of New Orleans, where steel imports slipped by more than 48%in 2007. That was a sharper decline than the 26% drop in national imports of the commodity.

General cargo at the port totaled 7.4 million tons in 2007. That was the least amount of cargo to reach New Orleans since 1991, when the port processed 6.9 million tons of the steel, boxed retail items and various other goods that make up general cargo. It also was a fifth less freight than the port saw in 2006 and down 400,000 tons from 2005, the year Hurricane Katrina struck the city.