Estimation of Financial Losses to Alabama's Seafood Industry Due to Hurricane Katrina

Abstract

Hurricane Katrina impacted the coastal areas in the states of Alabama, Mississippi and Louisiana, U.S.A. on 29 August 2005. This study estimated economic loss to Alabama's seafood industry from Katrina's devastation. For loss estimation, the Alabama seafood industry was divided into four categories: dealers and processors, shrimp fishermen, other fishermen, and charter boat owners and/or operators. Estimated losses were calculated separately for damages to boats and facilities (excluding insurance coverage), beached vessels, lost inventories, wages and invoices unpaid, and lost revenues from past and future lost sales. Loss estimation was based on broad guidelines suggested by the U.S. National Academy of Sciences for impact estimation from natural disasters and the U.S. OMB Circular A-94. Losses to Alabama's seafood industry were estimated at $122.25 million with a possible additional loss of $61.1 million due to defaulted loans.