The United States' sixth-largest port halted operations due to Hurricane Ida, causing a sharp surge in maritime shipping rates; the U.S. Department of Commerce responded urgently.

In response to tight shipping capacity and soaring freight rates, the Ministry of Commerce will implement measures to help enterprises weather the crisis. Last Sunday, Category 4 Hurricane Ida made landfall in New Orleans, striking the city and large areas of southeastern Louisiana, causing severe damage—including downed trees and widespread power outages—making it the most powerful storm to hit the region in 16 years. According to Bloomberg News, heavy rain and strong winds from Hurricane Ida battered Louisiana’s coast, forcing the Port of New Orleans to suspend container terminal and bulk cargo operations. The Port of New Orleans is located in southeastern Louisiana and ranks as the sixth-largest U.S. port by cargo volume. It is also Louisiana’s only international container port. The New Orleans Foreign-Trade Zone manages more independent warehouses and sites than any other port in the United States. According to the Louisiana State Ports Association’s website, New Orleans terminals ceased loading and unloading operations on August 30; other companies involved in bulk transport or transferring cargo onto smaller vessels also suspended operations that same day. Fortunately, as reported by Reuters, a spokesperson stated that preliminary assessments indicated no major damage to the port’s commercial facilities following Hurricane Ida’s passage, and the port expects to resume operations as soon as possible in coordination with relevant authorities. (Image source: Internet; copyright reserved) Nonetheless, the impact of Hurricane Ida remains substantial. To avoid the hurricane’s violent onslaught, vessels are diverting from the Mississippi River. On August 28, the U.S. Coast Guard closed the lower reaches of one of the world’s longest rivers, prompting the Port of New Orleans Authority to reschedule vessel arrivals. U.S. gasoline and natural gas futures prices surged sharply, as the storm halted 91% of crude oil production and 85% of natural gas production in the Gulf of Mexico. According to U.S. media outlet Business Insider, 44 cargo ships were stranded off California’s coast—the highest number since the pandemic began. Labor shortages, rapid virus spread, and surging holiday demand have caused severe port congestion, significantly increasing vessel wait times. Data from the Port of Los Angeles shows average vessel waiting time has risen to 7.6 days. The California ports of Los Angeles and Long Beach account for roughly one-third of all U.S. imports—and serve as the primary entry point for goods imported from China. These ports experienced severe congestion during the pandemic, which will likewise affect many sellers’ inventory replenishment and cargo deliveries. (Image source: Internet; copyright reserved) Maritime transport disruptions and port congestion have severely impacted global supply chains, driving up sellers’ shipping costs. Although these freight challenges have troubled many foreign trade enterprises and cross-border sellers, the government has quickly taken notice and will implement measures to alleviate sellers’ burdens. At a press conference held by the Ministry of Commerce on August 26, the spokesperson stated that tight shipping capacity and high freight rates are global phenomena. The Ministry of Commerce, together with the Ministry of Transport, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation, has proactively adopted measures—including increasing container supply, enhancing maritime shipping capacity, and strengthening international cooperation. Local governments have also intensified shipping service support for small and medium-sized enterprises (SMEs), helping them reduce costs and losses.

Barge transportation on the U.S. Mississippi River has been shut down! Over 2,300 vessels are stranded.

It is understood that the Mississippi River is the fourth-longest river globally and the largest river in the United States—stretching over 6,000 kilometers—with a watershed covering 41% of the contiguous U.S. land area and flowing through 31 states. It is also one of the world’s busiest commercial waterways. Currently, inland river transport remains the primary mode of domestic freight movement in the United States—especially for agricultural products. According to data from the U.S. Bureau of Transportation Statistics, approximately 5% of U.S. freight—measured by weight and distance—is transported via river barges. Aside from inland barges, shippers have virtually no other affordable alternatives. Moreover, Mississippi River freight accounts for 92% of U.S. agricultural exports—particularly during harvest season. This waterway serves as the nation’s ‘artery’ for crop exports and commodity transport; petroleum, fertilizer, and imported steel also move along portions of this route. Recently, Ingram Barge Company—the largest barge operator in the United States—advised its customers that it would be unable to deliver shipments on time, citing low water levels disrupting normal river operations and rendering cargo transport subject to force majeure. The closure has forced companies to seek alternative transport methods—for metals, agricultural goods, and fertilizers—while some have postponed scheduled barge loadings until conditions improve. Shippers have already observed rising rail and trucking costs. Barge capacity drastically reduced; freight rates skyrocketed Since the pandemic erupted two-and-a-half years ago, disrupted U.S. supply chains have struggled to recover. Now, West Coast ports—key cargo gateways—remain severely congested. The shutdown of this vital corridor has further worsened an already strained supply chain. Even after the Mississippi River resumes operations, barges will carry 20% less cargo than usual to avoid excessive draft in shallow waters. Due to the narrowed navigation channel, no more than 25 barges may pass at once—down from the typical 30–40. Mike Seyfert, CEO of the National Grain and Feed Association, stated that, owing to both reduced numbers of barges per trip and decreased cargo loads per barge, total barge transport capacity on the Mississippi River had declined by approximately 50% even before the recent complete shutdown. This has driven shippers’ freight costs sharply upward. According to newly released government data, barge freight rates reached $49.88 per ton last Tuesday—nearly 50% higher than a year earlier—and the highest level ever recorded. A late-September report released by the U.S. Department of Agriculture (USDA) revealed that U.S. wheat and corn supplies fell short of expectations, while soybean inventories exceeded forecasts—shocking markets. Drought-driven barge rate hikes have rendered U.S. corn especially expensive. Rising prices and shrinking supply may prompt the USDA to downgrade its U.S. export forecasts.

US Coast Guard Closes Mississippi River at New Orleans After Tanker Collides With Riverboat

2 days ago

The US Coast Guard closed the Mississippi River near New Orleans after a tanker collided with a riverboat, impacting logistics in a major petrochemical hub while search and rescue operations continue for 129 people on board.

icis

2026-11-13

US Coast Guard Closes Mississippi River at New Orleans After Tanker Collides With Riverboat

US Coast Guard Closes Mississippi River at New Orleans After Tanker Collides With Riverboat

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