MEXICO CITY — Hurricane Katrina's battering of the Port of New Orleans is being felt throughout Latin America as companies scramble to reroute northbound vessels loaded with steel and apparel while importers in the region await delayed shipments of American grain and fertilizer.
The Louisiana port is one of the United States' principal gateways for commerce with Latin America and the Caribbean. Officials estimate that one-fifth of the imports that pass through the port each year hail from the region -- including Brazilian coffee, Honduran auto parts, Mexican beer and Salvadoran underwear. About 15% of the port's exports are sent to buyers in Latin America.
It's a lucrative piece of business that port officials have eagerly courted and are anxious to keep as they struggle to restore commercial traffic. The port recently opened an office in Brazil to woo more trade from South America's largest economy. And it's looking to pacts such as the Central American Free Trade Agreement to boost its volume, according to Port of New Orleans President Gary LaGrange.
"We're hanging our hat on that for the future," LaGrange said.
On Tuesday, some of the port's cargo facilities remained unrepaired, its workforce was scattered and none of its seven cranes were operational.
LaGrange said it could be a couple of weeks before normal operations resume. However, some shipping veterans said it could be months.
The disruption is already reverberating through some industries that get their supplies on a "just in time" basis.
Michigan-based Lear Corp. produces automotive wiring harnesses from facilities in Honduras, most of which are shipped to U.S. clients through the New Orleans port. With the port not yet able to accept inbound cargo, Lear is diverting shipments to Miami and some East Coast ports, according to company spokeswoman Andrea Puchalsky.
She said in an e-mail message that other companies were rushing to do the same, "putting a strain on those ports" and raising concerns about keeping products flowing smoothly to clients.
So far "we are meeting customers' needs but with every passing day, it is becoming increasingly difficult," Puchalsky said.
Latin American coffee producers are watching anxiously. New Orleans is one of only four U.S. ports certified to handle coffee traded on the New York Coffee Exchange. About 1.6 million bags -- 27% of the current U.S. coffee supply -- are warehoused at facilities near the port, according to Joe DeRupo, spokesman for the National Coffee Assn.
