The Ins and Outs of the Louisiana Ports

Whether you make it at home or purchase it from your favorite coffee shop, your morning cup (or cups) of Joe is getting more expensive.

Tariffs — along with weather disturbances ­— have resulted in a 14.6 percent to 14.8 percent year-over-year increase in coffee prices through July, according to the U.S. Bureau of Labor Statistics (BLS).

Prices jumped 2.6 percent just from June to July, the BLS reported.

Very little coffee is grown in the U.S. (relatively speaking, Hawaii is a small producer), so coffee is imported from Brazil, Colombia and other Central and Latin American countries, as well as Africa.

Given consumers’ penchant for the beverage, it seems unlikely the market will fade.

Many coffee beans enter the U.S. through the Port of New Orleans, said to be the second-largest port for coffee imports. The city itself is home to J.M. Smucker Company, whose coffee brands include Folger’s, Dunkin’ and Café Bustelo, and many other roasting companies.

Harrison Crabtree, executive director of the World Trade Center New Orleans, says it is too early to tell how or if rising coffee prices will impact the Port of New Orleans and international trade in Louisiana.

“We’re in a good spot because we have a diversified cargo flow and we have a diversified customer base,” Crabtree said of the port. “I think we’re in a in a better spot potentially than other ports that are now having to look to other markets or other commodities.”

A Major Waterway: The Mississippi

When we think of ports, imports and supply chains, the West and East Coast ports generally come to mind. During the coronavirus pandemic, the West Coast ports of Los Angeles and Long Beach became notorious for the backup of container ships waiting to deliver goods.

Because the Louisiana ports — there are 19 of them — are largely export-based, Crabtree says, they were immune to the backlog of Chinese imports entering the U.S. that the California ports experienced. The ports are diversified in terms of where commodities are coming and going from, he says.

“In light of tariffs, we’re not seeing significant changes in these trade flows,” he says. “Again, because we’re not over reliant on one economy over the other, it’s helped insulate and protect our ports.”

Grain is a major export commodity. Besides coffee, imports include liquified natural gas (LNG). The LNG facility under expansion at the Port of Plaquemines is one of the largest in the world.

In terms of ship channel tonnage, the Port of South Louisiana ranks second in the U.S., with 217.5 million tons in 2023, topped by the Houston Port Authority in Houston, Texas. The Port of New Orleans (75.4 million tons), Port of Greater Baton Rouge (73 million tons) and Lake Charles Harbor District, Louisiana (64.2 million tons) are ranked seventh, eighth and 10th, respectively.

Future plans include building a state-of-the-art container terminal down river to accommodate larger containers. Ports such as Port of South Louisiana, Port Baton Rouge and Port of Saint Bernard are focusing on the future energy ecosystem, from hydrogen development to lithium refining for batteries for cars, Crabtree says.

“Our ports aren’t just a locally serving port system,” Crabtree says of the Louisiana ports. “They serve a lot of America, a lot of our heartland agricultural commodities.” The Mississippi River, which runs through Louisiana, is a major transportation system, feeding into 37 U.S. states and two Canadian provinces. “It’s an important aspect for the entire middle of America to be able to access our port system for that global economy,” Crabtree says.

The Louisiana ports also have access all six Class 1 railroads as well as major interstates, making transportation a benefit, he says.

Focusing on Supply Chain

In light of the tariffs and current global geopolitical tension, Crabtree says that the World Trade Center New Orleans, which is a collaboration between the center and Greater New Orleans Inc., is advising its members to ensure they understand all levels of their supply chains and to plan ahead for unknowns.

 “What we’re seeing from our members,” he says, “is a much deeper understanding of where their goods are coming from. They’re building in more lead time to account for any unknown challenges.

“We learned a lot of supply chain lessons during the pandemic. What we see here in Louisiana is that our supply chains are resilient; we’ve learned from the COVID-19 disruption and have built in protections. I think that’s another reason we’re seeing our ports do comparatively well right now.”

(Photo credit: Getty Images/Halbergman)