Damage to transport infrastructure from Hurricane Sandy being examined

Category 1 Hurricane Sandy has now become the largest tropical system recorded in the Atlantic measuring around 900 miles across – covering an area close to one and a half times the size of Texas

By ·

In its preliminary evaluation of the economic impact of Hurricane Sandy IHS Global Insight said potential infrastructure damages currently stand around $10 billion of insured damages and about twice as much, or $20 billion, in terms of total damages.

“This would put Sandy on par with Irene in terms of total infrastructure damage estimated around $15 billion,” said economist, Gregory Daco.  “However, with Sandy being a much larger storm, it is likely to end up causing more flooding damage than its 2011 peer which would increase total damage estimates.”

Category 1 Hurricane Sandy has now become the largest tropical system recorded in the Atlantic measuring around 900 miles across – covering an area close to one and a half times the size of Texas. According to the National Weather Service, Hurricane Sandy was reinforced by two cold fronts from the north and west transforming it into a post-tropical superstorm (i.e. nor’easter) with heavy rains, snow and gusting winds as it moved up the Eastern coast.

The region affected by Hurricane Sandy will be similar to the one affected by Hurricane Irene in 2011 – a region stretching across 15 states on the East Coast with a gross regional product of around $3 trillion. Assuming the total economic losses are around $30 billion to $50 billion that would represent losses equivalent to 1.0% to 1.7% of gross regional product (GRP) for the states affected.

This would be larger than the damages from Hurricane Irene which represented about 0.5% of GRP for the 13 most states affected, but it would be much less than Hurricane Katrina, which caused around $120 billion in damages, amounting to 9.6% of gross regional product for the states most impacted – Alabama, Florida, Louisiana, and Mississippi.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Global · Infrastructure · Logistics · All Topics
Latest Whitepaper
Improving Packaging: The Cost of Shipping Air is Going Up
Retailers and manufacturers that insist on using inefficient and sloppy packaging methods—oversized boxes, inefficient packaging, poorly constructed palletized contents—are paying for their mistakes in sharply higher freight rates. Pitt Ohio White Paper, Logistics White Paper, Dimensional Packaging
Download Today!
From the July 2016 Issue
While it’s currently a shippers market, the authors of this year’s report contend that we’ve entered a “period of transition” that will usher in a realignment of capacity, lower inventories, economic growth and “moderately higher” rates. It’s time to tighten the ties that bind.
2016 State of Logistics: Third-party logistics
2016 State of Logistics: Ocean freight
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....

Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...
Port of Oakland launches smart phone apps for harbor truckers
Innovation uses Bluetooth, GPS to measure how long drivers wait for cargo