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Browse by Category › Hurricane Katrina

September 14, 2005

Port Open for Business

Posted by Laura Rich at 7:08 PM

In New Orleans, the port is coming back to life. Though this busy port was not expected to be back on line for something more like months, it started shipping again today.

That is good news. The port of New Orleans accounts for about 30% of U.S. port traffic. It also employs a lot of people. Generally, it will be better for the economy if the port is back in business.

But here's the other side of this news. In the 16 days since Hurricane Katrina hit the Gulf region, many businesses around the country began quickly making other arrangements for their shipping needs to avoid business disruption.

This sort of inconsistency and change in expectations doesn't always jibe with general business process. But if there's one thing that has been consistent in New Orleans, it has been inconsistency. Can businesses seriously consider returning to previous work arrangements in this environment?

2 Comments

September 1, 2005

Disaster Recovery Stories

Posted by Laura Rich at 5:06 PM

Many Inc. readers are among those impacted by Hurricane Katrina. Some have been directly hit in their home-base of New Orleans, while others are being touched by Katrina's ever-growing tentacles.
Do you have a story to share? Please tell us how your business is responding to the after-effects of Hurricane Katrina.

3 Comments

Katrina v. 9/11

Posted by Laura Rich at 4:42 PM

As any New Orleans business owner can tell you, Hurricane Katrina is much worse than 9/11. But how so? Today, Daniel Goss writes on Slate.com that Katrina can drag down the entire U.S. economy in ways that 9/11 thankfully did not:

New Orleans "lies at the heavily trafficked intersection of the Old and New Economies...when the infrastructure of these networks gets damaged, it can't be replaced easily or cheaply."

"If New Orleans were pure Old Economy--if, for example, it simply grew wheat--its devastation would not cost that much, because other wheat and grain growers would replace it. If it were pure New Economy, like Wall Street, it could bounce back instantly, because its real assets (information and people) would not be irretrievably lost. But because it's right in the middle, the damage will be enormous."

Everyone may feel the after-effects of Katrina, small businesses not least among them.

For more small business information and resources on Katrina, click here.

2 Comments

August 30, 2005

More on Hurricane Katrina

Posted by Mike Hofman at 6:07 PM

The situation in New Orleans seemed to take a turn for the worse on Tuesday as a crucial levee gave way resulting in dangerous flooding, the New York Times reported. Martial law was declared in some of the hardest hit parishes, as Mayor Ray Nagin and other local officials regrouped in Baton Rouge. Gov. Kathleen Blanco asked all non-emergency workers to evacuate the city. Local businesses were threatened by rising flood waters, as well as looting. Instances of theft were reported by both the Associated Press and the local newspaper, the Times-Picayune.

The Internal Revenue Service offered a small bit of relief this afternoon when it announced extended tax deadlines for businesses and individuals in the affected areas.

Does your company do business in New Orleans or the surrounding area? If so, what has your experience been? How are you coping?

1 Comment

August 29, 2005

Power Down

Posted by Carole Matthews at 2:09 PM

Reports that the entire city of New Orleans is without power and sewage treatment is just the beginning of what this city and surrounding areas will face once Hurricane Katrina weakens and heads farther north. The potential economic impact is astounding if the predictions come to pass. In the insurance industry alone, one forecasting company, Equicat in Calif., estimated a cost of $30 billion earlier this weekend, though the figures have shrunk since the storm weakened to a Category 4 early Monday morning. It now estimates costs at $12 billion. (In comparison, Andrew, which hit Florida in 1992, cost the industry over $25 billion.)

The insurance industry, and businesses related to it, isn't the only one that will feel a hit from Katrina.

**Oil and gas industry -- Oil prices hit $70 a barrel in early morning trading as major refineries from the world's leading producers were threatened. Chevron, Exxon Mobil, Royal Dutch-Shell Group, and BP PLC, among others, all evacuated workers. The Louisiana Offshore Oil Port, the nation's largest oil import terminal, evacuated all workers and stopped unloading ships on Saturday. With an estimated 633,000 barrels of crude oil taken out of circulation, the Bush Administration is considering tapping the nation's emergency reserves.

**Shipping industry -- The Port of Southern Louisiana is one of the nation's largest ports, moving such staples as grain, sugar and timber. How long it will be closed is not known.

**Tourism and gambling industries -- Tourism is New Orleans' lifeblood. Casinos line the Gulf Coast. Reports from French Quarter hotels have windows being blown out, while 10 casinos have closed up shop in Gulf Port, Miss., according to an MSNBC.com video report.

**Agriculture and fishing industries -- Sugar and cotton farmers in the area affected by Katrina are expected to be hit hard, as does the fishing industry, most notably the gulf shrimp industry, noted the same MSNBC.com video report.

With businesses boarded up and likely not to open until floodwaters recede, electricity is restored, and damages have been assessed, it's likely that the hit on business in general will be astounding. But will it all be bad news?

Allen Roberts' article, "Hurricane Season Gives Business a Boost in Florida," illustrated Florida's bounce back from four hurricanes and one tropical storm that resulted $50 billion in damage. The state added 225,000 new jobs from May 2004 and May 2005, with 110,000 being in professional, education, and health service. The state also gained an unexpected windfall of $2 billion in tax revenue.

It begs the question: Is one state's hurricane another state's boon? Florida's recovery seems to hold hope for New Orleans' businesses and those similarly affected by Katrina, but can Louisiana follow in its path? Or was Florida just lucky in its recovery?