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LMR Ports COVID Pres

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LMR Ports COVID Pres COVID‐19 Impacts to Lower Mississippi River Ports Lower Mississippi River Ports Five public port authorities serve the Lower Mississippi River, which in 2019 handled 5,449 foreign‐flagged ships. The five ports make up one of the largest port complexes in the world and is a diverse port complex allowing unparalleled access to 30‐plus major inland hubs such as Memphis, Chicago and Canada via 14,500 miles of waterways, six Class I railroads and the Interstate Highway System. • Plaquemines Port, Harbor and Terminal District • St. Bernard Port, Harbor and Terminal District • Port of New Orleans • Port of South Louisiana • Port of Greater Baton Rouge Economic Impact • Louisiana ports carry 20 percent of the Nation’s waterborne commerce, including 60 percent of the Nation’s grain exports and 20 percent of the Nation’s coal and energy. • One‐in‐five Louisiana jobs are tied to maritime trade and transportation. • More than 500 million tons of cargo moved on the Lower Mississippi River in 2019. • Four blue‐water cruise lines homeport in New Orleans, along with two inland river cruise lines. • Port NOLA is 6th largest cruise port in the US and was anticipated to handle 1.4 million passengers in 2020. • Cruise lines and passengers spend more than $250 million in Louisiana annually, including River excursions to St. James Parish, Baton Rouge, West Feliciana Parish and others. Uninterrupted Service Throughout Pandemic • Louisiana Ports have continued to work international cargo throughout the pandemic. Port staff and essential employees, including employees of the International Longshoreman’s Association, stevedores, truck drivers, warehouse workers, River Pilots and those mariners on the Mississippi River have all played critical roles in keeping Louisiana and the Nation working. • The true strength of Louisiana ports has long been in our diversity and this never has been truer. • During the unprecedented COVID‐19 pandemic, Ports continue to operate as a global gateway, with frontline port, railroad and over‐the‐road employees ensuring the safe and efficient movement of cargo and maintaining the fluidity of the supply chain. Lower Mississippi River COVid-19 Impacts • Port office buildings were closed to the public, while essential employees remained on the job ‐ working both in the office and field and remotely when able to do so. • Ports and their tenants invested in PPEs and screening services for those entering port terminals and facilities. • Ports are working closely with State and federal partners, adhering to all CDC guidelines and working with the US Coast Guard and CBP to ensure the safest workplace possible. • The American Association of Port Authorities has led efforts to share best practices with ports and federal partners and efforts to include public port authorities in federal stimulus relief bills. Lower Mississippi River COVID -19 Impacts • Louisiana Container volumes, which are driven by Louisiana exports, have remained above last year’s levels. However, volumes could be impacted further by the global economic downturn beginning to be realized in Northern Europe, Asia and South and Central America. • Breakbulk business, primarily comprised of raw materials like steel, natural rubber, non‐ferrous metals and lumber products continues to be challenged by tariffs. Tonnage and ship calls are down about 25 percent compared to the first quarter of 2019. The market outlook for the remainder of the year is not positive given the global economic outlook. With the shuttering of North American auto and tire plants and slowing manufacturing, we will likely see a significant negative impact to breakbulk volumes in the second and third quarters of 2020. • Bulk volumes of export grain, petrochemicals and oil and gas storage has remained steady with slight declines in oil storage. • Industrial and hospitality leases will also be impacted as tenants look for rate relief in order to maintain workforces and operations during the economic downturn. Lower Mississippi Cruise Line Impact • The main impact to the Port of New Orleans is the suspension of the cruise industry. • Passenger volumes from four homeported oceangoing cruise ships and six inland cruise vessels were estimated to be a record 1.4 million in 2020. • Cruises were suspended March 15 for all oceangoing and Mississippi River cruises and are not expected to resume until late summer or early fall. • A record 235 cruise ships called on Louisiana in 2019. • Demand for cruises remains a question. More than 70 percent of cruise passengers typically spend two nights in hotel rooms in Louisiana and inland cruises stop in St. James Parish, Baton Rouge, West Feliciana Parish and other communities for shore excursions, as well. • The cruise industry accounts for nearly 20 percent of the Port of New Orleans revenue and the industry has a significant impact on the regional and state economy, as guests and crew spend $129.1 million annually and cruise lines spend another $125.2 million in the State. Lower Mississippi River Ship Call Impact • Mississippi River Pilot Associations realized a decline in ship calls in recent months due to a combination of factors. • High River stages, mixed with tariff issues, loss of project draft at SW Pass and COVID‐19 have all played a part in fewer ships entering the Lower Mississippi River. • January ship calls declined 17% as Asia was first hit with the pandemic. • April was down 12% compared to 2019 and the first week of May saw a 21% percent decline. • Pilots aboard domestic and foreign‐flagged ships, along with brown‐water mariners performed admirably to ensure vessels travelled safely to and from port. Mississippi River Foreign Flag Vessel Arrivals By Month 2020 vs 2019 600 570 500 472 469 458 464 429 412 397 400 300 200 113 100 89 0 Jan Feb March April May (1st - 7th) 2020 2019 Daily # of Vessels in Port Mississippi River April 2020 vs April 2019 160 140 143 138 136 136 137 136 134 134 135 135 135 134 132 133 133 133 132 133 128 129 128 128 125 125 126 125 126 125 120 123 121 116 116 115 113 113 111 111 110 110 109 110 109 109 107 107 108 105 106 106 105 100 104 104 104 103 103 104 99 100 95 95 80 60 40 20 0 1-Apr 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 7-Apr 8-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 28-Apr 29-Apr 30-Apr 2020 2019.
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