Waves overtopped New Orleans' industrial canal in the Upper 9th Ward Monday after Hurricane Gustav stormed ashore south of the city.

The Lower 9th Ward was destroyed by flooding three years ago when a levee along the same canal broke during Hurricane Katrina.

By 10 a.m., waves could be seen consistently crashing over the top of the floodwall, which remained unbroken. Waves overtopped the floodwall from the Florida Avenue Bridge to the Judge Seeber Bridge, an area of about half a mile.

However, water lapping over the top will not create the sort of widespread flooding seen after Katrina when parts of the levees failed. Those breaches did not occur immediately after the storm, but after a day or more of constant pressure.

"There's no indication of any walls in distress," said Robert Turner, the regional levee director for the Southeast Louisiana Flood Protection Authority-East. "No trenches are being cut that will destabilize the walls. No indication of walls deflecting or anything being washed out. No evidence of major seepage."

The Category 2 hurricane came ashore around 10 a.m. Monday near Cocodrie, La., according to the National Hurricane Center. When it came, it brought 110 mph winds with it, and spawned tornado warnings for miles.

Forecasters once feared the storm would arrive as a devastating Category 4 with much more powerful winds.

Meanwhile, city officials reported two ships broken loose from their moorings and careening down the same industrial canal.