Hurricane Katrina
Hurricane Katrina made landfall on the U.S. Gulf Coast on August 29, 2005, flooding New Orleans, halting most Port of New Orleans operations and shutting most Gulf of Mexico oil and gas production for weeks.
What happened and why it matters
Katrina showed how one regional disaster can disrupt national supply chains for fuel, grain and consumer goods. At its peak it shut in more than 90 percent of Gulf of Mexico oil production, refineries with roughly a tenth of U.S. capacity went offline, and oil prices spiked, pushing up diesel prices and carrier fuel surcharges. The Mississippi River ports that handle most U.S. bulk grain exports were halted, and shippers paid more to move freight by rail and truck. Problems with relief logistics also became a lesson in disaster response. Businesses now plan for hurricanes with alternate distribution centers, backup carriers and inventory positioned before storm season.