Search
Close this search box.

Hurricane Delta slams Cancun, targets the U.S. next

201007-hurricane-delta-jm-0914_bcc3db2bfead48789c305552daa0ce15.fit-2000w

Hurricane Delta slams Cancun, targets the U.S. next

(Bloomberg) — Hurricane Delta weakened to a Category 3 storm just before slamming into the coast of Mexico but remains life-threatening.

Delta came ashore along the northeastern Yucatan Peninsula near Puerto Morelos, the National Hurricane Center said at 6:49 a.m. ET on Wednesday, Oct. 7. Maximum sustained winds were near 115 miles per hour (185 kilometers per hour) and the storm surge will raise water levels by as much as 8-12 feet along the northern coast of the Yucatan Peninsula, the center said earlier Wednesday. The hurricane is predicted to strengthen again to Category 4 as it moves over the Gulf of Mexico toward the U.S. in the coming days.

“Little change in strength is expected before the center reaches the coast of the Yucatan peninsula during the next few hours,” the U.S. National Hurricane Center said. “Although some weakening is likely when Delta moves over the Yucatan peninsula, re-strengthening is forecast when the hurricane moves over the southern Gulf of Mexico Wednesday night and Thursday.”

The hurricane is forecast to churn through the energy-producing region of the Gulf before likely hitting Louisiana, which has been struck twice already this year, on Saturday (Oct. 10).

Delta’s winds can snap trees, flatten houses and cause power outages lasting weeks.

“Extremely dangerous storm surge and hurricane conditions are expected within portions of the northern Yucatan Peninsula of Mexico,” said Dan Brown, a meteorologist with the center.

The latest disaster

Delta threatens to become the latest in a string of deadly natural disasters in 2020, a year that has been marked by a hyperactive hurricane season, devastating wildfires, and a derecho that wreaked havoc across the U.S. Midwest. It will be the record 10th tropical storm or hurricane to hit the U.S. in a year. So many have formed that the hurricane center has used up all the names on its official list and has resorted to the Greek alphabet to designate systems.

Delta’s winds grew from 70 mph to 110 mph in 24 hours, which is the fastest intensification for an October storm since Hurricane Wilma in 2005, Colorado State University’s Klotzbach said in a Tweet.

Cancun and the nearby island of Cozumel are poised to “get hit hard,” said Chuck Watson, a disaster modeler with Enki Research. Delta could cause $12 billion to $16 billion in damage and losses to Mexico and another $2 billion to the U.S. coast later this week, depending on its exact path, he said.

Mexico has started to evacuate the hotel zone in Cancun and the island of Holbox as the Yucatan readies for the impact of Delta, Quintana Roo Governor Carlos Joaquin said in a tweet. Meanwhile, President Andres Manuel Lopez Obrador said Tuesday (Oct. 6) he’s sending 5,000 members of Mexico’s armed forces to the Yucatan for prevention efforts.

Hurricane Wilma forced 70,000 people to flee and left 300,000 homeless after it struck the Yucatan in October 2005, according to the U.S. National Centers for Environmental Information. The storm came ashore with winds of 130 mph near Playa del Carmen.

Oil and gas producers including Enbridge Inc., BHP Group and Royal Dutch Shell Plc were evacuating or preparing to evacuate workers from Gulf platforms ahead of Delta. Operators had shut about 29% of crude production and 8.6% of gas output, the Bureau of Safety and Environmental Enforcement said. The hurricane is poised to clip the Cameron liquefied natural gas plant, which had just resumed exports after being shut in late-August.

After Delta loses power over the Yucatan, it’s expected to return briefly to Category 4 strength in the Gulf as it moves toward Louisiana, which was struck by Hurricane Laura in August. Cool water and wind shear in the northern Gulf could weaken Delta, but it will likely make landfall again as a hurricane, said Rob Miller, a meteorologist with AccuWeather Inc.

“There is an increasing likelihood of life-threatening storm surge and dangerous hurricane-force winds, especially along the coasts of Louisiana and Mississippi, beginning on Friday,” the hurricane center’s Brown said in an advisory.

New Orleans urged residents to “gather food, water & medication for at least three days” in a text via its emergency alert system on Tuesday.

Miller said he expects the storm to strike somewhere west of New Orleans, but storm surge, heavy rains, and winds could reach as far east as the Florida Panhandle.

“This region of the county is the magnet for hurricanes this year,” Miller said.

The Atlantic has spawned 25 storms this year, the second-most on record after 2005 when deadly Hurricane Katrina inundated New Orleans.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related posts

Insurance-technology

Specific Technologies Driving Insurtech Investment in 2024

Understanding the Funding Decline The decrease in funding does not necessarily spell trouble for the insurance sector but instead highlights a strategic shift, the report suggests. “The insurance industry, like many sectors, is focusing on the most promising ventures with substantial insurance potential,” the report explains. “Insurers are directing their investments toward key areas and current trends such as embedded insurance, employee benefits, and cyber risk management. This strategic investment approach signals a forward-looking mindset within the industry.” Three Key Insurtech Trends for 2024 The report identifies three major trends shaping insurtech investments in 2024: Public Insurtech Companies: Financial and Growth Strategies The report also notes that public insurtech companies are prioritizing revenue growth as their main goal. These firms are restructuring their financial strategies to boost cash flow and capitalize on rising revenue streams. Their growth prospects are supported by expanding asset portfolios and strong market demand. “Public insurtech companies are focusing on revenue growth and optimizing their financial frameworks to increase cash flow,” the report states. “The growth potential for these companies is driven by increasing revenue opportunities, broadening asset bases, and a robust market for their services.” In summary, while global insurtech funding saw a decline in 2023, the industry’s focus on GenAI, digital process management, and connected insurance technologies is setting the stage for a dynamic and forward-looking 2024.

Read More
Business

Insurer Secures Unanimous Supreme Court Victory in New York Choice of Law Dispute

In the world of sports, a clean sweep, a shutout, or a perfect game is the ultimate achievement. In the legal arena, a unanimous decision from the U.S. Supreme Court is equally rare and significant. In a notable legal triumph, Great Lakes Insurance SE achieved a unanimous 9-0 victory in the Supreme Court on February 21, 2024. This victory follows a protracted legal battle that began in the District Court of Pennsylvania, advanced to the U.S. Court of Appeals for the Third Circuit, and culminated in the Supreme Court’s decisive ruling. Background of the Case: Great Lakes Insurance SE v. Raiders Retreat Realty Company The heart of the dispute was the insurance contract’s clause selecting New York law to govern any future legal conflicts. Although the financial implications of this case were relatively minor compared to the broader marine insurance industry, the insurer’s determination to uphold a crucial maritime legal principle has significant long-term implications for marine insurance. Faced with the insured’s counterclaims—including allegations of breach of fiduciary duty, insurance bad faith, and violations of Pennsylvania’s Unfair Trade Practices Law—the insurer was confronted with serious risks. Such claims could lead to the shifting of attorney’s fees, treble damages, and more, which might normally encourage insurers to settle rather than risk pursuing justice. However, Great Lakes Insurance, supported by The Goldman Maritime Law Group, opted to challenge the Third Circuit’s decision and seek clarity from the Supreme Court. Supreme Court Ruling: A Landmark Decision In a landmark ruling, Justice Brett Kavanaugh affirmed that choice of law provisions in maritime contracts should be upheld by default. This ruling is a major victory for establishing a consistent federal standard in maritime law and avoiding a patchwork of state laws that could complicate marine insurance disputes. The Supreme Court’s decision overturned the Third Circuit’s earlier judgment, which had questioned whether Pennsylvania’s public policy concerns might override the insurance contract’s choice of New York law. By upholding the New York choice of law clause, the Supreme Court eliminated the extra-contractual bad faith claims under Pennsylvania law, thereby ensuring that the dispute could be resolved based on the merits of the insurance claim itself. Significance of the Supreme Court’s Decision This ruling represents a significant advancement in maritime law, affirming that choice of law clauses in maritime contracts are generally enforceable. The decision establishes a clear, uniform legal framework for resolving maritime contract disputes, which will streamline the process and ensure fair adjudication of future insurance claims. Justice Clarence Thomas’s concurring opinion was particularly notable for its criticism of the 1955 Wilburn Boat v. Fireman’s Fund Insurance decision, which had previously influenced maritime insurance law. Thomas argued that Wilburn Boat was incorrectly decided and stressed that a uniform and enforceable set of rules is essential for the development of maritime law. Impact on the Marine Insurance Industry The Supreme Court’s decision sets a “bright-line” rule affirming that choice of law clauses are valid unless there is a strong argument against the selected jurisdiction. By endorsing New York’s insurance laws as a reasonable choice, the ruling supports a more consistent and predictable legal environment for marine insurers. This decision represents a major step forward in maritime law, helping insurers better assess risks, determine premiums, and ensure fair and efficient resolution of maritime insurance disputes.

Read More
Try your instant quote