$500M African copper shipment heads to New Orleans, causing port congestion

Cailian Press, Sept. 19 (Edited by Xiaoxiao) — On the surface, the voyage of the Nord Norfolk appears unremarkable: this Liberian-flagged bulk carrier is crossing the Atlantic toward New Orleans, USA.

But the vessel may be setting a new record: it carries approximately $500 million worth of African-origin copper, marking the highest single-batch market value for a commodity cargo ship since data analytics firms began keeping records.

At the same time, the ship represents just the tip of the iceberg of a "copper surge" rushing toward U.S. shores ahead of potential copper import tariffs—a torrent so intense that some key U.S. ports are struggling to cope.

Port of New Orleans Reaches Saturation

According to sources familiar with the matter, the Port of New Orleans—serving as a major gateway for metal imports into the United States and a primary hub under CME Group—is now essentially saturated.

More troublingly, an estimated total of about 100,000 metric tons of copper from Africa and South America are scheduled to arrive at the port in September and October.

"Severe congestion has emerged at maritime terminals in the New Orleans area, causing frequent delays in transferring metals such as copper and steel onto road trucks and rail cars," said the CEO of a logistics service provider.

The company is now switching to barges to transport metals northward along the Mississippi River.

US Continues to "Siphon" Copper

This $500 million shipment and the congestion at the Port of New Orleans have become part of a long-term upheaval in the global copper market. Traders are closely watching whether the U.S. president will extend copper import tariffs to refined copper. Although a decision was originally expected months ago, none has been made, allowing copper from around the world to continue flowing steadily into the U.S. market.

Strong U.S. import demand has been the core driver behind the record surge in copper prices. Since the first formal proposal to impose tariffs on copper last February, the global benchmark price has soared by approximately 50%. The rise in U.S. prices has been even more dramatic, creating extremely lucrative opportunities for traders and producers shipping copper to the United States at record volumes.

Arbitrage Spread Narrows

However, in recent weeks, as skepticism has grown over whether Trump will ultimately proceed with tariff policies, the spread between New York and London copper prices has narrowed. Consequently, whether the pace of U.S. imports will slow has become a central concern across the entire copper industry chain—from investors weighing whether the record rally can be sustained, to Chinese manufacturers facing higher import costs due to copper being diverted to the United States.

Data shows that the current LME-Comex copper arbitrage spread stands at $169 per ton, down from a peak of $789 per ton earlier this year. The spread has fluctuated wildly since Trump returned to the White House. If the arbitrage spread narrows further, it could weaken the incentive for copper traders to continue shipping to the United States, potentially redirecting some future cargoes to Asia. However, changing course mid-voyage can be both complex and costly.

"I wouldn't say arbitrage trading is completely dead," said Marcos Carias, North American economist at a global trade credit insurance firm.

Warehousing Capacity Expands

It is reported that as demand for U.S. warehousing surges, storage companies have been applying to Comex in recent years to increase their warehouse capacity. The exchange stated that since early 2025, it has added 20 new warehouses, increasing copper storage capacity by nearly 725,000 short tons—equivalent to about 39% of annual U.S. refined copper consumption. This year, new storage facilities have opened in Mobile, Chicago, and Atlanta.

According to one source, shipping company BBC Chartering has also designated Mobile, located on the Alabama coast, as another stopover point for South American copper.

"The mere possibility of tariffs has already achieved the effect policymakers hope to accomplish through them: attracting large supplies into the United States and raising domestic premiums to support local projects," said Ryan McKay, senior commodities strategist at TD Securities.

He noted that the White House may continue delaying its decision to maintain this status quo.