Hurricane Sandy causes $10bn in economic damage - estimate

30 October 2012 16:32  [Source: ICIS news]

Taxi cabs line a flooded streetHOUSTON (ICIS)---Hurricane Sandy may cause about $5bn (€3.85bn) in damages and an additional $10bn in economic damages in the US northeast, according to initial estimates made by a risk assessment firm on Tuesday.

Loss estimates are comparable to Hurricane Irene in August 2011, EQECAT said.

Economic damages include property damage from wind, rain and flood, as well as intangibles such as business interruptions and additional living expenses, the company said.

Property damage consisted mostly of housing and general commercial buildings, and infrastructure utilities included roads, water and power, as well as municipal buildings, EQECAT said.

Sandy lost its hurricane status and made landfall as a post-tropical cyclone near Atlantic City, New Jersey at about 2000 New York Time on Monday (0000 GMT on Tuesday), the National Hurricane Center (NHC) said.

Maximum sustained winds reached 80 mph (130 km/hr), and the National Ocean Service tide gauges reported storm surge heights of 11.9 feet in Kings Points, New York.

The hurricane killed at least 33 people in the US, according to news media reports.

President Barrack Obama signed disaster declarations for the states of New York and New Jersey on Tuesday, allowing federal funding to help individuals and businesses recover from the storm.

The storm left more than 3.6m customers without power, the US Department of Energy (DOE) said.

Hurricane Sandy disrupted business as the New York Stock Exchange (NYSE) and NASDAQ were closed Monday and Tuesday. NYSE Euronext (NYX) will also close on Tuesday in coordination with all U.S. equities, bonds, options and derivatives markets.

In the chemical industry, Braskem shut down its 345,000 bbl/day polypropylene plant in Marcus Hook, Pennsylvania. DuPont closed its headquarters in Wilmington, Delaware, as well as seven sites in Delaware, New Jersey, Pennsylvania and Rhode Island.

The storm’s threat caused several refineries to shut down, including Phillips 66’s 238,000 bbl/day refinery in Linden, New Jersey and Hess Corporation’s 70,000 bbl/day processing facility in Port Reading, New Jersey, the DOE said.

Philadelphia Energy Solutions (Sunoco) reduced rates at its 335,000 bbl/day refinery in Philadelphia, Pennsylvania, as did Monroe Energy at its 185,000 bbl/day refinery in Trainer, Pennsylvania, the DOE said. PBF also reduced rates at its 182,200 bbl/day facility Delaware City, Delaware and its 160,000 bbl/day Paulsboro, New Jersey refineries.

In addition, several ports and freight rails suspended shipping services until further notice.

($1 = €0.77)

By: Tracy Dang
+1 713 525 2653

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