Historic Gulf Coast winter storm causes an estimated $14 billion to $17 billion in economic loss, business disruptions and travel impacts

AccuWeather Global Weather Center – Jan. 21, 2024

“This has been the worst winter storm to hit the Gulf Coast in decades. Travel was   essentially shut down along several stretches of the I-10 corridor between Houston and New Orleans that are critical for commerce,” AccuWeather Chief Meteorologist Jonathan Porter said. “Communities in Louisiana known for hurricanes and scorching summer heat faced dangerous blizzard conditions. Businesses have been forced to shut down. Supply chain and shipping logistics have been severely disrupted. With the cold remaining in place, the impacts and interruptions from this winter storm will be felt for days to come.” 

AccuWeather’s preliminary estimate of total damage and economic loss between $14 billion and $17 billion accounts for major travel delays and disruptions, including hundreds of flight cancellations and delays across the United States. The preliminary estimate also considers the economic toll of major airports closing during the storm, including Bush Intercontinental Airport and Hobby Airport in Houston, as well as Louis Armstrong International Airport in New Orleans.  

Two inches of snow accumulated at the airport in New Orleans in the span of two hours on Tuesday. Snow totals topping 10 inches have been reported along the I-10 corridor in Louisiana. Up to 6 inches of snow has been reported in parts of southeastern Texas. More than 4 inches of snow has been reported, so far, in parts of Mississippi and Alabama.  

With temperatures plunging 15-25 degrees below the historical averageacross the region during and after the storm, AccuWeather’s preliminary estimate considers the cost of damage and repairs from burst water pipes, as well as the increased demand for heating and energy. Damage and repairs from car crashes on slippery and snow-covered roads, as well as injuries sustained in accidents or slip and falls are also considered in AccuWeather’s preliminary estimate.   

AccuWeather is the trusted source for total damage and economic loss estimates for weather disasters in the United States. Our recognized experts incorporate independent methods to evaluate all direct and indirect impacts of extreme weather events. In 2017, AccuWeather first issued a widely quoted preliminary estimate for total damage and economic loss during catastrophic flooding from Hurricane Harvey along the Gulf Coast, which helped people in the impacted area, and across the country, understand the magnitude of the disaster.    

AccuWeather experts consider a variety of sources, statistics and unique techniques to estimate total damage and economic loss. The cost of snow removal, salting and sanding, damage to property, job and wage losses, crops and commodities, interruption of the supply chain, auxiliary business losses, emergency management, as well as flight delays and cancellations were considered in the preliminary estimate.  

To put this southern winter storm into further context, the AccuWeather preliminary estimate for total damage and economic loss from the cross-country winter storm and deep freeze in Texas in February 2021 at $155 billion, as that cold outbreak left millions of people in the dark without heat for days and nearly took down the state’s power grid. More recently, AccuWeather estimated the total damage and economic loss from wildfires near Los Angeles, California, at $250 billion to $275 billion.  

AccuWeather experts say the combined total damage and economic loss from extreme weather events in the U.S. in the past 12 months, including this week’s southern winter storm, the wildfires in Southern California and hurricane landfalls in 2024, have reached a staggering $735 billion to $816 billion. That figure is equivalent to nearly 3 percent of the U.S. gross domestic product.  

“As the climate continues to evolve, it will lead to more and more previously rare or unprecedented high-impact events across the country,” AccuWeather Senior Meteorologist and Sr. Director for Special Projects Marshall Moss said. “People need to be prepared for more extreme weather in the future, especially as insurance coverage becomes more difficult to afford and secure, leaving some families and businesses underinsured or uninsured.” 

AccuWeather Founder and Executive Chairman Dr. Joel N. Myers says the past 12 months have been the most costly and impactful stretch of extreme weather in the United States in the past 90 years, since the dust bowl in the 1930s. 

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