The Ports of Indiana have opened a new bonded storage facility at their Mount Vernon port along the Ohio River, expanding their capabilities and enabling their first aluminium shipment. According to Ports of Indiana, the facility was developed in around six weeks to meet urgent requirements from aluminium buyers and sellers.

The move comes at a time when the US aluminium market is seeing shifts in supply following the introduction of a 50 per cent tariff on all imported aluminium by the administration, including imports from US-Mexico-Canada Agreement (USMCA) partners. With tariffs in place, some buyers have shifted towards imports from lower-cost producers such as Bahrain and the United Arab Emirates. These shipments typically move through port systems instead of arriving via rail or road.

In this context, Ports of Indiana said its Mount Vernon site is positioned as “a competitive Midwest hub for duty-deferred storage of high-value commodities". However, ongoing tensions in the Middle East and shipping constraints in the Straits of Hormuz may affect these supply routes, which could prompt buyers to explore alternative overseas sources.

The first aluminium shipment arrived in late March, travelling by ocean vessel from Asia to New Orleans before being transported by barge to Indiana. The material is expected to be distributed to manufacturers across the Midwest for use in sectors such as automotive, construction and packaging.

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While the primary aluminium market has been most affected by the tariff-driven supply gap, changes are also being seen in aluminium scrap and recycled-content flows. This may create opportunities for traders in those segments to utilise the new facility.

“Opening a federally approved bonded facility within six weeks after a customer inquiry is unheard of in our world and a tremendous accomplishment,” said Jody Peacock, chief executive officer, Ports of Indiana. “The collaboration and efficiency of our port team, our terminal operator and US Customs is creating real-time supply-chain solutions and competitive advantages for our customers.”

The agency explained that bonded storage facilities are secure, government-authorised areas where imported goods can be stored without immediate payment of duties or taxes. This allows businesses to defer costs for up to five years, improving cash flow and offering more flexibility in supply chain management.

The Mount Vernon facility includes both indoor and outdoor storage, featuring a 20,000-square-foot warehouse and a one-acre storage yard. To meet federal requirements and address security concerns, the site is equipped with approximately 800 feet of fencing, along with surveillance cameras and controlled access systems. The port supports bulk and break-bulk cargo handling, with transloading across barge, truck and rail. It connects to five Class I railroads, has 10 barge berths, capacity for over 400 barges, and about 600 acres for development.

Jonathan Lamb, chief executive officer, Indiana River & Rail Terminals added, “This facility opens the door to new cargoes in metals, energy and technology sectors, and we see strong potential for continued expansion.”

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