The Hindu Business Line : Shipping lines suspend booking of cargo to US east coast

MAJOR shipping lines have suspended accepting cargo to the US east coast ports as the ports in Mississippi, Alabama and Louisiana, including the Port of South Louisiana, Port of New Orleans and Port Fouchon have been closed after Hurricane Katrina slammed the cities.

"There is no point in accepting cargo when we do not know whether we could deliver them. We do not know when things will return to normal there," said an official of a major shipping line.

Some of the cargoes sent from India to the US east ports include garments and food products. The hurricane came at a time when the Christmas and New Year shipments are about to begin in a big way, he said.

The official said that the Port of New Orleans, which sits along Louisiana's Lower Mississippi River, is the fourth largest in the US and the entry point for imports of steel, rubber, precious metals and coffee. These products also get distributed to inland destinations from the port, he said.

The port is also the gateway for as much as 70 per cent of the grain exported from the US. Products such as soyabean, corn and wheat move down the Mississippi River on barges through the Port of New Orleans, and movement of these have been affected following the hurricane. The port is also a large central connection city for the rails and manufacturers carry industrial supplies such as chemicals and parts to factories in the southern US, he said.

APL, a wholly owned subsidiary of the Singapore-based Neptune Orient Lines, said that rail lines in the affected areas have been severely damaged.

New Orleans destined traffic has been embargoed, meaning that shipments moving on APL's network towards New Orleans are being diverted to locations well outside of the area (for instance, Houston or Los Angeles), and new bookings to or from New Orleans have been suspended until delivery capabilities become clearer and improve.

Maersk Sealand, in a statement, which is available in its Web site, said that the New Orleans APM Terminal is likely to remain closed for several days until the US Coast Guard deems the waterways safe for navigation. Contingency plans are in place to move cargo over land if necessary. As a result of the storm, delays can be expected throughout the week for all inter-modal shipments moving to/from and via New Orleans, Southern Louisiana, Mississippi, and Alabama areas, it said.

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