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Monday, August 30, 2021

NOLA coal shipments on pause due to Ida rail, port closures - S&P Global

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Channel surveys underway, expected to take one-two days

Floodgate closures stall rail operations

Coal carriers remained moored Aug. 30 in the New Orleans region as Hurricane Ida forced closures of vulnerable rail, barge and port operations.

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Damage assessments and channel surveys were underway in the afternoon but expected to take one to two days to complete.

"Everything is still shut down. It's a disaster," a Gulf Coast-based shipping source said. "There's no communication. Communications are down."

S&P Global Platts' multiple phone calls to various ports in the area were unsuccessful due to network outages.

"We don't have any updates as of now on the condition of the terminal and the impact to Hurricane Ida as all the roads are blocked and phones are not working either down in the Gulf region," a Mississippi River coal source said. "We secured the terminal and equipment as well as possible before the storm hit."

Port Condition Zulu remains in effect

The US Coast Guard set Port Condition Zulu beginning 2 pm Aug. 28 restricting vessel traffic within Captain of the Port Sector New Orleans and the Lower Mississippi River.

"They won't open the river until the Coast Guard checks to make sure there are no sinkings, no disruptions, no groundings," the Gulf Coast shipping source said. "They have to check the whole river. That takes a day and a half to two days, hopefully. But there's no way to know, it depends what they find."

The last outbound ship left Pilottown by noon Aug. 28 and no inbounds were scheduled after that time, according to the Port of New Orleans. Zulu conditions remained in effect into Aug. 30 as port crews began to assess the tropical storm's impacts.

"Initial reports indicate no major damage to our facilities," the Port NOLA said Aug. 30. "We are coordinating with navigation partners as well as local and state officials so we can resume operation safely and as quickly as possible"

Containerized operations were closed Aug. 30 at New Orleans Terminal and Ports America. Breakbulk operations were closed Aug. 30 at Empire, Costal Cargo, Gulf Stream Marine and Ports America. The Inner Harbor Navigation Canal also remained closed.

Floodgate closures halt rail operations

Rail movements also were interrupted by Hurricane Ida. According to Port NOLA, flood gate closures forced the closure of the New Orleans Rail Gateway at 2 pm Aug. 28. The gateway remained closed Aug. 30 due to floodgate closures.

New Orleans exported 5.33 million mt of thermal coal through the first six months of 2021, up from 1.74 million mt in the same period last year, according to US Census Bureau Data. After Baltimore, the NOLA region is the largest thermal coal exporting port in the US.

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NOLA coal shipments on pause due to Ida rail, port closures - S&P Global
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