Do you know about the Houston Ship Channel Security District?

Being involved with International Business and handling material that comes in and out of the port at our warehouse facility,  we are familiar with the Houston Ship Channel Security District.

However I've not had any direct dealings with them,  but earlier this week I had the opportunity to attend the Houston Ship Channel Security District  update luncheon,  was  found it extremely informative,  and left the meeting feeling reassured that Houston is in good hands.

I also left the meeting with some facts that surprised me,  and thought I would share some of them here.

• Houston is the busiest port in the Nation!
• Harris County Sheriff's Office is responsible for much of the port security both on land and water, and is the 3rd largest police force in the country.
• If the Houston Port System had to be shut down for a day because of an "EVENT",  it could cost the local economy 300 Million  dollars a day.
• A common quote that I've heard over the past couple of years was restressed  "so goes the port of Houston, so goes the National Economy"

Texas Economy hits highest point in Two Years!

Report: Texas economy hits highest point in two years


Published: April 14, 2011

The Texas economy is performing better now than anytime in the last two years, Comerica Bank reported this week.

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Decline of 2009 has bottomed out

Energy Information Administration predicts rising oil demand, prices
January 15, 2010 Break Bulk Connection

Global oil demand fell in 2009 and 2008, the first time since 1983 that oil demand has fallen for two consecutive years, according to a short-term energy outlook released this week by the US Energy Information Administration. However, the decline bottomed out in mid-2009 and the EIA expects recovery to continue with oil demand growth of 1.1 million barrels per day in 2010 and 1.5 million bbl/d in 2011.

Countries outside of the Organization for Economic Cooperation and Development will lead 2010 demand recovery while OECD countries should see some demand growth in 2011, the EIA said. Overall, China is expected to lead world consumption demand growth with estimated increases of more than 0.4 million bbl/d both years.

The EIA expects the benchmark West Texas Intermediate crude oil price per barrel, which averaged $62/bbl in 2009, to average $80 in 2010 and $84 in 2011. EIA’s forecast assumes U.S. GDP growth of 2 percent in 2010 and 2.7 percent in 2011 and world oil-consumption-weighted growth of 2.5 percent in 2011 and 3.7 percent in 2011.

The EIA also expects annual average natural gas spot prices in the U.S. to increase from $4.06 per thousand cubic feet (Mcf) in 2009 to $5.36 Mcf in 2010 and $6.12 Mcf in 2011.
Global investments in oil and gas exploration and development, and related heavy-lift and project cargo movement, can be expected to increase as oil and gas prices rise.

Heavy Lift Markets

This article is of particular interest to us here at Dixie Cullen, as we're seeing a greater number of Project Cargo coming through our warehouse facility and are seeing more customers choose the direction of Break Bulk.

Project, heavy-lift markets on solid ground, Drewry’s Page says
October 16, 2008 – 3:28 pm-->By Peter Leach -- Journal of Commerce - Break Bulk

NEW ORLEANS — The project and heavy-lift sectors of the breakbulk shipping industry will fare much better during the current global economic crisis than either the bulk or the container sectors.

Even if breakbulk shipments of such commodities as steel and forest products suffer during the global economic slowdown, demand for vessel space for the components of heavy industrial projects in the developing world will remain strong, Mark Page, director of liner shipping for Drewry Shipping Consultants in London, told The Journal of Commerce’s 19th Annual Breakbulk Transportation Conference here on Thursday.

“It’s a tough time for shipping, but the breakbulk and project cargo sectors should hold up well,” Page said.

Demand will hold up particularly well for the new modern multipurpose vessels that are specially designed to carry project cargo. Demand for the older, less-specialized vessels will probably slow.

What is rescuing project cargo from the global downturn is the continuing growth of markets for projects with long lead times in China, India, the Middle East and Russia, which will continue to grow in 2008 and 23009, Page said.

Although project cargo carriers have been ordering new multipurpose vessels in record numbers in the last few years, there is no danger of overcapacity in this sector. That’s because there has been no scrapping of older vessels in the last few years, and the ratio of new orders to the existing fleet is far lower than the container fleet, for example.

In 2008, the multipurpose vessel fleet is expected to increase by 4 percent, while demand for capacity is expected to increase by 5 percent, Page said.