Florence Threatens Norfolk, Impact May Be Limited By Slower Moving Supply Chains

The Virginia Ports Authority will close Norfolk from midday 9/12 at the USCG’s direction ahead of the arrival of Hurricane Florence The storm may become one of the most northerly-landing hurricanes on record. Alongside Charleston, which is also in Florence’s path and is also likely to close, the two accounted for 9% of U.S. imports in the past 12 months.

The direct impact on regional supply chains depending on Norfolk's facilities may be limited by the prevalence of slower moving products. For example furniture accounted for 15% and toys 3% of inbound containers in the past 12 months.

Container-lines that may need to reschedule or divert services including Hapag-Lloyd (16% of volumes in the past 12 months) and CMA-CGM (15%) though most major liners serve the port in some capacity. CMA-CGM has already flagged a diversion to four vessels in response to the hurricane.