When Hurricane Sandy hit New Jersey on Monday, October 29, 2012, many homes, apartments, condos, businesses, and even warehouses where damaged by the fierce winds and heavy amounts of water. One New Jersey warehouse that stores certified cocoa not only suffered damages to the building, but bags of certified cocoa were damaged by the water.
The Kearney, New Jersey, storage facility operated by Continental Terminals suffered water damage during Hurricane Sandy. This resulted in 4,900 bags of certified cocoa damaged, with each bag of cocoa ranging from 137 to 152 pounds. Additionally, Continental reported that 35,000 bags of Arabica coffee was also damaged at another warehouse, and over 2,000 other bags of cocoa were damaged during this storm.
Hurricane Sandy flooded parts of New Jersey, causing this New Jersey warehouse water damage. Because of this, a moratorium for Continental’s Kearney cocoa warehouse has been put in place. This means that this warehouse can no longer receive or deliver any of the certified cocoa or coffee until the moratorium is lifted. InterContinental Exchange (ICE) stated that, “the moratorium will be lifted when repairs are completed and the warehouse meets exchange standards.”
The total number of bags of cocoa that sustained water damage totaled approximately 7,100 bags and 35,000 60-kg bags of Arabica coffee, which accounts for 8.2% of the certified coffee and .09% of the certified cocoa stored in the Port of New York. The damaged bags have been deemed non-deliverable.
The suspension of the warehouse in Kearney will be lifted when property damage that was done by the hurricane is repaired.