[050911.EN.OTH] US Transportation Counts The Cost Of Hurricane Irene

As Hurricane Irene approached the US earlier this week, airports, ports and rail transportation began shutting down from North Carolina to New York.

In preparation of the storm, FedEx diverted planes to hubs in Indianapolis and Memphis; Norfolk Southern halted operations at the Norfolk port and trucking companies closed terminals that were located in the path of the storm.

Although the aftermath of the hurricane was not as severe as anticipated, widespread road, rail, bridge and power infrastructure damage was reported. Flooding has been a major problem throughout the region. Over 260 roads and 30 highways were closed in Vermont and 40 major highways were closed in North Carolina due to flooding, downed trees and debris.

Airports reopened late Sunday and early Monday while most ports re-opened by Monday. However, the Port of Baltimore, which reopened on Tuesday, was allowing only limited cargo ship traffic through the Chesapeake Bay as the Coast Guard continued to assess the situation.

According to CSX, flooding in New York and New Jersey remains an obstacle for its intermodal services. In particular, as of Tuesday, the company noted there were no intermodal trains operating out of Boston; Kearny, Little Ferry and North Bergen, New Jersey; Philadelphia or Springfield. 

However, intermodal terminals serving those locations were opened and planned to resume rail service as tracks were restored. Eastbound intermodal traffic was held temporarily in Chicago until receivers were able to take deliveries.

Trucking companies are working with customers on a case by case basis to deliver their freight. New England Motor Freight closed four of its terminals in Virginia, New York and Vermont and was restricting deliveries in some areas. Like many carriers, New England Motor Freight is holding cargo until customers are able to receive it. According to the company, "The customers aren't ready. Many are closed or don't have power yet."

In this heavily populated section of the US, it will take time to return to normalcy. Although monetary estimates of infrastructure damage have not been published as of yet, a negative impact on the transportation industry is expected. For the airline industry, this is the third major shutdown in the past nine months and it is estimated the storm could cost airlines up to $110m.

Delays in delivery will continue for the next week or so as roads, bridges and rail tracks are repaired and returned to service. Rail companies, CSX and Norfolk Southern will be impacted financially as they repair their networks throughout the region. Trucking companies will also be impacted financially as they hold freight until customers are able to accept delivery.

Source : EFT (Content provided in partnership with Transport Intelligence).