Gary Biggs' goal helped Derry lead by two points at half-time but free-taker Michael Kennedy's second half goal helped New York take control.
The result may present the Ulster Council with problems for the 4 June final scheduled for Casement Park.
New York don't want to travel because of visa problems that a number of their men may have in returning to the US.
Antrim officials have made it equally clear that they are not prepared to travel to New York because of the costs that would be incurred.
Derry started without the suspended Reamann Kennedy and Kevin Hinphey while Liam Hinphey, Barry McGoldrick, Conor Quinn, Paul Hearty and Neil Bradley were all exam-tied.
Other absentees included injured players Gregory Biggs and Sean McBride.
New York included Cathal McKeever whose brother Emmett lined out for the Oak Leafers.
Derry manager Sean McCloskey rued a number of missed chances after half-time.
"We led by two points at the interval and we had three or four opportunities in a 10-minute period but didn't take them," McCloskey told BBC Sport.
"The players gave it absolutely everything but we just came up a bit short.
"Peter O'Kane was absolutely outstanding. He was man-of-the-match by a mile."