Fact Friday: Texas Sea Ports

 

Texas seaports dominate Gulf of Mexico trade

The value of annual imports and exports at the Port of Houston is more than that of any other U.S. seaport on the Gulf Coast, totaling approximately $169 billion in 2011.

from the Offices of the Texas State Governor

Fact Friday: Texas Deep Water Sea Ports

Texas Deep Water Sea Ports 
from the office of the State of Texas Governor

• The Port of Houston is the No. 2 busiest port in the U.S. by total cargo volume and 12th busiest in the world (2010).

• The Ports of Beaumont and Corpus Christi rank in the top 10 among all U.S. ports for total cargo volume.

• Texas has more than 1,000 miles of channel maintained by the U.S. Army Corps of Engineers. 

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Dixie Cullen is not only about Storage, but Service!

Postcards by Vistaprint

Fact Friday: Truck Accidents at their Lowest

No one is questioning the need for greater truck safety. In fact, truck-related fatalities per 100 million miles traveled are at their second-lowest point since the government began compiling that data in 1975.

Brazilian Customs Officers’ Strike Disrupts Ports

Breakbulk Staff | Wed, 06/27/2012 - 05:05

Breakbulk Online - News Story

Strikes by Brazilian customs officers have disrupted major ports in the country. Cargo clearance has significantly slowed, reported Inchscape Shipping Services.

"Unless this week’s negotiations with the government around better salaries and working conditions are successful, interruption to vessel movements is likely to intensify," Francisco Villagrán, general manager for ISS operations in Brazil, told reporters.

Affected ports include Santos, Paranagua, Salvador, Manaus, Santarem, Santana and Itacoatiara.
Customs officers have been on a limited strike schedule, which includes two days of no work and minimal levels on the remaining days of the week, according to a statement from Inchscape.

However, customs leaders have warned that if the negotiations over the next few days are unsuccessful, they will start a full strike that could affect the whole country and paralyze Brazil including ports, airports and bonded warehouses.

Panama Canal Authority Confirms 6-Month Delay

Breakbulk Staff | Mon, 07/02/2012 - 05:51

Breakbulk Online - News Story

Despite delay, the first monolith has been completed at the Pacific Locks

The Panama Canal Authority's US$5 billion expansion project has fallen six months behind schedule, which could mean that the new locks will not be operational until 2015, authority officials announced on national television.

"The company is trying to catch up with lost time,'" said Alberto Aleman Zubieta, the authority's chief executive officer. Problems arose late last year when officials determined that the concrete for the project did not meet specified standards.

The project was originally slated for completion in October 2014. Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double tonnage capacity and allow the transit of much longer, wider ships through the waterway.

However, construction reached an important milestone earlier this month with the completion of the first monolith for the new locks on the Pacific end of the Panama Canal. The monolith is the first one to be completed from a total of 46 such structures being built in the Pacific locks upper chamber, Panama Canal Authority officials said in a statement.

The concrete and steel structure is 33.8 meters high, 7.5 meters wide and 27 meters deep. The culverts are part of the locks filling and emptying system and will run along the lock walls, which are made up of the monoliths. The construction of this single monolith required 232 tons of reinforced steel and 2,605 cubic meters of concrete.

Photo shows work on the first monolith, part of the filling and draining system at the Pacific end of the Panama Canal. Courtesy of the Panama Canal Authority.

Independence Day

Independence Day Graphics @ dazzlejunction.com

We wish everyone a Happy and Safe 4th of July Holiday

Our offices and warehouse will be closed on 

Wednesday July 4th

 in observance of Independence Day

We will have regular business hours on Tuesday the 3rd and Thursday the 4th.

Fact Friday: Texas Nations Top Exporter to Africa

Texas ranks as the nation's top exporter to Africa, selling $7.3 billion worth of goods and services to the continent in 2011, nearly double what it sold in 2005, according to the U.S. Census Bureau. Potential new markets for Texas businesses exist in infrastructure, transportation, energy, extractive industries, technology, health and tourism and related industries. 

Texas Africa Summit

Caution Ahead: Fledgling CSA program suffers growing pains

The most ambitious truck safety program in a generation is leaving the industry bewildered over the exact nature of the initiative—which, according to analysts, seems to be changing continuously.

 

By John D. Schulz, 

Contributing Editor Logistics Management
April 01, 2012 

 

CSA, which stands for “Compliance, Safety, Accountability,” was rolled out in phases starting in 2011. The program is designed to weed out as many as 5 percent, or 150,000 of the nation’s more than 3 million long-haul truck drivers—those “bad apples” that the government is convinced are disproportionately responsible for too many truck-related accidents and deaths.

It uses a complex system to rate the nation’s nearly 525,000 DOT-registered interstate trucking entities on seven Behavior Analysis and Safety Improvement Categories, now known as BASICs. The seven BASICs are: unsafe driving; fatigued driving; driver fitness; alcohol and drugs; vehicle maintenance; cargo security; and crash history.

Carriers are given “scores” in each category; the higher the score, the worse the performance. Carriers are then issued warning letters if their scores range above 65, meaning that only 35 percent of the carriers in their class have worse scores. For hazmat carriers the cutoff score is 60.

Click Here for Complete Article

Facts Friday: Diesel Fuel Costs

We all know how the "fuel surcharge" added to the trucking invoice has been an issure for many, so here's an interesting fact:

DOE: Diesel Prices at 5-Month Low

The national average retail diesel price fell 5.1 cents to $3.846 a gallon – the lowest price in five months – during the week ended Monday, June 4, according to the U.S. Department of Energy’s Energy Information Administration. The average price has fallen 30.2 cents in the past eight weeks and is 9.4 cents below the same week last year.

Average retail prices fell in all regions, led by a 6.7-cent decrease on the West Coast, which excludes California, where prices fell 5.9 cents but remained the nation’s most expensive at $4.169 a gallon. The smallest decrease was 2.9 cents in the Rocky Mountain region. The least expensive diesel was $3.746 a gallon in the Midwest.

Complete diesel price information is available on EIA’s website.

Friday Facts: Houston Jobs created

785,000

The most recent economic study shows that more than 785,000 jobs throughout Texas are in some way related to ship channel-related activity.

Time is Money

As a Small Business, we at Dixie Cullen, are aware that TIME IS MONEY.    It's important not only to us, but to our customers and to the truck drivers that service our warehouse facility.   We've all heard about the tightening pool available truck drivers,  and the more time they can spend moving from one point to another means versus sitting in line waiting to be loaded is a WIN, WIN situation for everyone in the supply chain.

Here at Dixie Cullen we believe in having "outbound" loads pre-staged and ready to be loaded from the time that the truck backs into the building.  Allows for timely loading while still following standard safety precautions to protect those that are working to load the cargo,  but to provide a safe load ready to leave our facility and travel on the road to it's final destination.

Export Training from Houston Export Assistance Center

Export News  June 2012

A Monthly Publication of the Houston Export Assistance Center  « 1919 Smith Street, Suite 1026, Houston, Texas 77005 « Export.gov/Texas/Houston

SEMINARS/TRAINING

Export University:  Understanding Export Documentary Letters of Credit – and the 5 Elements to Discrepancy Free Presentations

June 20, 7:30 am – 12 noon

UH Small Business Development Center, 2302 Fannin, Suite 200, Houston, TX  77002

Cost:  $95.00 Includes Certificate of Completion and Refreshments. Parking is free.

Register: http://www.houstonexportu.org/ 

What do you need to know about Letters of Credit to protect your interests and get paid quickly.

Equatorial Guinea Economic Forum, June 11, 8:30 am – 4 pm

Hilton Post Oak, 2001 Post Oak Blvd., Houston

Cost: $30

Contact:  Kristin Smith at ksmith@houston.org or 713-844-3694

Learn about business opportunities available through the diversification of the country’s economy.  The program will be highlighted a keynote speech from His Excellency Teodoro Obiang, President, Republic of Equatorial Guinea.

Zambia: Trade Delegation to Visit Houston, June 25-26

For details, contact Nyamusi Igambi at Nyamusi.igambi@trade.gov or 713-209-3112

Export University:  U.S. Export Licensing and FCPA Requirements, August 16, 7:30 am – 12 noon

UH Small Business Development Center, 2302 Fannin, Suite 200, Houston, TX  77002

Cost:  $95.00 Includes Certificate of Completion and Refreshments. Parking is free.

Register: http://www.houstonexportu.org/ 

Texas-Africa Summit, September 27-28

International Trade Center, 11110 Bellaire Blvd., Houston, TX

Contact:  Debra Bann at dbann@texasafricasummit.com or 832-448-0524

Friday Facts: Break Bulk

    65%

The Port of Houston is the nation’s leading breakbulk port, handling about 65 percent of all major project cargo in the U.S.

Friday Facts: Houston Container Ports

Container Terminals

The Port of Houston handles about 70 percent of all the containerized cargo in the U.S. Gulf of Mexico. The Port of Houston Authority ‘s container handling facilities are among the finest in the nation, providing efficient and cost-effective service.

Friday Facts: Well Positioned for Growth

"The Port Authority is well-positioned for growth.  Houston container cargo trade alone could increase  by 15 % in trhe next few years as a result of the Canal Expansion."  

Co. Leonard D. Watterworth

Friday Facts: EEOC mandates new rules on background checks

The EEOC’s recent guidance concerning employers’ use of criminal background checks on job applicants comes down to two words: Individual assessment.


The bottom line of the agency’s recently released “enforcement guidance”: Blanket policies that automatically reject job candidates with criminal records are illegal.

The rationale: Such policies have been found to have a disparate impact on minorities, according to the EEOC.
The guidance comes on the heels of a recent settlement between the agency and Pepsi Beverages, which agreed to pay $3.13 million after EEOC investigation found that the criminal background check policy formerly followed by Pepsi discriminated against African Americans in violation of federal anti-bias laws.

Click here for full article

Retroactive MPF Increase Bills Update

From:  OHL Trade Services CBP will start to issue Merchandise Processing Fee (MPF) rate increase bills shortly.  When you receive your bill(s), CBP strongly recommends that you remit individual checks for each corresponding bill. CBP advised that remitting one check for multiple bills severely complicates their application process.  The increase applies to all goods entered beginning October 1 st, 2011 through November 5 th, 2011. If you imported goods during this period, you should expect a bill reflecting the rate increase from 0.21% to 0.3464%.

Study: Many midsized firms risk export violations

This was recently shared by Theresa Garcia from Roanoke Trade

Amber Road, formerly Management Dynamics and a provider of global trade management systems, has released a study on U.S.-based mid-market companies' export compliance challenges and found they are increasingly at risk of violating federal regulations.

Of the 150 companies surveyed, 23 percent do not screen for restricted parties prior to engaging overseas customers. For those that did perform this screening, 30 percent make checks manually using spreadsheets or Websites. Only 41 percent of respondents had a comprehensive export compliance program.   

“The good news is U.S. exports are growing, and mid-market companies in particular are increasing revenues by accessing foreign markets,” said Scott Byrnes, vice president of marketing at Amber Road. “Unfortunately, it appears that many mid-market companies aren’t fully aware of the regulatory requirements governing global trade.”
   

The concern with this lack of knowledge is that criminal and civil penalties for export control violations are often harsh. Companies can face criminal penalties of up to $500,000 per violation for "dual-use" export (items with both commercial and military applications) control violations and an individual faces up to 10 years in jail. Civil fines reach $12,000 per violation and can also include denial of export privileges.
  

Respondents said a lack of executive sponsorship was a primary reason for their trade compliance deficiencies.
  

According to a March Bureau of Economic Analysis report, U.S. exports grew 7.7 percent from January 2011 to January 2012. The bulk of the growth was related to small and midsized companies. Companies of this size also accounted for 97.8 percent of all U.S. exporters, according to the most recent report by the U.S. International Trade Commission.
   

Other noteworthy findings from the report include:

• 20 percent of companies don't have formal export compliance programs.
• 66 percent use manual processes to classify products.
• 35 percent have a management team that is somewhat aware of the regulations, but have no involvement in the compliance process.

   A full copy of the report can be found here. — Geoff Whiting

Facts Friday: Container Chassis

Chassis -- everyone has gotten so used to the "Liners" providing the Chassis to the trucking companies to move the containers from the container yard and port the the point of destination or visa versa,  that it's coming as a shock when they're being told that a "Chassis Rental Fee"  is being added to the drayage charges.    Not long ago only one or two companies were charging this fee.  As of TODAY there are over 15 that are charging.  It's a cost that needs to be built in to the landing costs of the containers.

Facts Friday: Panama Canal

The Panama Canal  has been a hot topic for quite sometime,  and everyone is looking forward to the business that it will bring to the Houston and Texas starting in 2014.

We were attending a luncheon last week,  presented by JETCO Delivery,  and  Roger Guenther VP of Container Terminals for the Port of Houston Authority was the guest speaker,  during his presentation Mr. Guenther  announced that the opening of the Panama Canal to the bigger ships is being pushed back at least 6 months until  2015.

Facts Friday: Houston Container Traffic

Houston has two major "Container Ports"  Barbours Cut and Bayport Terminals, and Houston is the gateway for 95% of the containers in Texas.

Big, Heavy and Long

Big, Heavy and Long

Preparing this  "Shaker Drum" for export  was just standard fare for Dixie Cullen, handling machinery and equipment in temporary storage,  preparing for export,  is just something that is in our day to day operating procedures.  We take the time to  close the ends up and properly secure it to the flat rack for shipment,  all in a timely manner using ISPM 15 designated wood.  No job is to big or too small.

 

More Steamships cease providing Chassis

Yes,  more steamship lines have ceased providing chassis in the Houston market:  Joining the growing list are  ACL, COSCO and HYUNDI. 

Effective April 1, 2012 --  ACL
Effective May 1, 2012 --  COSCO and HYUNDI

Trucking companies will now be passing on the daily chassis rental fee, over and above the quoted price.

Cargo Crime Increases Over Holiday Periods

From our Friends at Roanoke Trade:  info@roanoketrade.com     Theresa  Garcia  tgarcia@roanoketrade.com

Last year, FreightWatch reported that cargo crime increases by 28% over holiday periods and that Thanksgiving weekend recorded the most cargo theft activity of all holiday periods in the United States (click here to register to view the report).

Shippers, manufacturers and transportation companies must remain aware of the increased security risks during the upcoming Thanksgiving weekend. Long holidays provide provide criminals with excellent opportunities to target, steal and transport goods to their storage locations before the product is even discovered missing.

Additionally, holidays can cause long delays for drivers attempting to deliver loads. These delays will increase the risk to drivers and loads in-transit by leaving them vulnerable for longer periods of time.

Holiday weekends are notorious for high volumes of cargo theft activity, especially at terminals and drop yards where loaded trailers are parked for long periods of time. This amplifies the need for logistics professionals to ensure their security protocols are up to date and in line with industry best practices. 

For warehousing operations, ensure your security alarm systems are functioning properly. FreightWatch also recommends the following:

• Treat all alarm trouble signals as an intrusion alarm
• Do not rely on a backup (cellular/radio) system
• If primary alarm fails assign security officer to patrol facility exterior or have a member of management remain at the facility

For in-transit operations, FreightWatch recommends drivers remain vigilant and maintain communication with their dispatch when stopped at high risk areas such as truck stops and rest areas. Loads should not be dropped or left unattended for any reason.

For More Information About This Topic  Contact FreightWatch.

~~~~~~~~~~~

As a side note to this posting  Dixie Cullen has always taken the extra steps during the Holiday's to ensure that your material and equipment, that is in storage at our facility, is not an easy target.  Monitored Security by off site firm,  people maintained on site and dogs.

U. S. Trade Deficit Narrows; Exports Hit Record

From Transport Topics 11/10/11

The U.S. trade narrowed by 4% in September as exports climbed to a record high, the Commerce Department said Thursday.

 

The gap between imports and exports declined to $43.1 billion, the lowest level this year, from a revised $44.9 billion in August that was smaller than originally estimated, Commerce figures showed.

Economists had forecast the deficit to widen to $46 billion, Bloomberg reported.

Exports increased 1.4% to a record $180.4 billion, boosted by sales of industrial supplies, capital equipment, automobiles and consumer goods, Bloomberg said.

Imports rose 0.3% to $223.5 billion. Demand rose for automobiles, food and industrial supplies, but crude oil imports declined, Bloomberg said.

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"

Turning Basing Terminal Truck Office

Faxed Delivery Orders will soon be History at Port of Houston Turning Basin Terminal Truck office.

The Port of Houston Magazine reported in their September/October issue that After December 31, 2011 faxed or e-mailed dock receipts or delivery orders will no longer be accepted at the North Side Turning Basin Terminal Truck Office.   This change will affect drivers delivering or picking up cargo from the public wharves on the lower level.

The Policy Change will enable the Port Authority to better serve all of its customers because it will expedite the processing of trucks through the Truck office,  eliminate unnecessary delays and reduce the possibility of errors.

Port of Houston Turning Basin upgrades under way to meet today's TRADE!

"In the beginning the Ship Channel was built on the backbone of cotton" says the port's managing director of general cargo facilities.

These days, steel is king, with more than 3.1 million tons moving through the port in the first nine months of this year,  up from 1.9 million tons over the same period last year.

from Houston Chronicle Article  10/29/11  Jenalia Moreno   jenalia.moreno@chron.com

Opening the Panama Canal to TEXAS

"As Jeff Moseley sees it,  the widening of the Panama Canal is a "Game Changer" for Texas Business and the Lone Star State's Economy.

In a recent article in NBIZ Magazine  Jeff Moseley President and Chief executive officer of the Greater Houston Partnership,  states  "It literally will allow Houston to serve the mid-continental United States ~ approximately 100 Million Americans.

The article goes on to share "As the waterway approaches capacity,  the expanded canal will improve the flow of international commerce.  The anticipated increase in containerized cargo going to Houston alone could grow by 15 percent in the next few years,  with a projected 150 percent increase to a total of 4.5 million TEUs by 2030.

We at Dixie Cullen are excited about the future,  and are poised to assist our customers with their storage and transloading needs.

Love it, or Hate it, CSA is here to stay!

Whether you applaud or oppose the Federal Motor Carrier Safety Administration's new truck-safety monitoring program, the Compliance, Safety, Accountability (CSA) initiative will no doubt impact the way your carriers operate. Here's what you need to know.

Since its unveiling in 2010, the Federal Motor Carrier Safety Administration's (FMCSA) new Compliance, Safety, Accountability (CSA) program has sparked significant interest from the transportation industry. Outcries that the new truck-safety monitoring program will place a stranglehold on the motor carrier industry and cause a severe dwindling of the driver workforce vie against passionate belief that CSA will provide the industry with concise and transparent data that can reduce safety risks on the nation's highways.

A point somewhere between the two extremes seems to be the most realistic outcome of the new program, which the government began enforcing in 2011.

Read full article…

ALERT

For more information, contact:
Kyle Burns, President & CEO
Office: 210.229.9036
Email: kburns@freetradealliance.org
http://www.freetradealliance.org/

Release date: September 1, 2011

Cross - border Trucking Program

on the Road in the Right Direction

San Antonio, TX - In ongoing discussion with the United States Department of Transportation, Free Trade Alliance has learned that seven companies from Mexico have applied to be a part of the Cross-border Trucking Program, two of which are pending U.S. approval to begin crossing the border by the end of September. It is at that time that Mexico will potentially suspend the remaining 50% retaliatory tariffs it placed on U.S. goods entering Mexico.

"Climate Controlled" Storage Space in Demand

As we're getting ready to start our 16th year in business,  we realize that we have continued to grow and service our customers by  offering the services that they need.

One of the services that we have been offering the past couple of years in our Temperature/Humidity Controlled Space,  it has been in such demand that we just expanded the space available by another 18,000 square feet.

This space is designed for "Industrial Material",  "Machinery" and "Equipment".   Our onsite heavy lift capacity can easily handle Motor Control Units,  Compressor,  Transformers and more.

Next time you're in South East Houston,  please drop in for a tour.

Global Economic Cooperation and Recovery

Dixie Cullen 

hosts a visit and facility tour from the

U. S. Department of State

International Visitor - Leadership Program

A Multi Regional Project

Global Economic

Cooperation and Recovery

The U. S. Department of State, International Visitor - Leadership Program, targeted Dixie Cullen Interest for a facility tour of their operation here in South East Houston. This program brought representatives in to discuss how old industrial facilities can be revitalized and put into operation employing more people.

This group is made up of representatives from 7 different countries and is part of a Multi Regional Project for Global Economic Cooperation and Recovery.

Countries included Israel, Brazil, Srilanka, Tunisia, Nigeria, South Africa, United Arab Emirates and Turkey.

It was a wonderful opportunity to showcase  Dixie Cullen Interests and the services we offer the international community.

So Far, Japan Earthquake has minimal impact on Trade at Port of Houston

The Port Of Houston Magazine
March/April

The massive earthquake and tsunami in Japan had a minimal impact on the Port of Houston.

Japan is not a major trading partner in the Port of Houston or the Port of Houston Authority,  accounting for 0.7 percent of all imports and 1.9 percent of all exports to the Port of Houston in 2010.  Japan accounted for 1.2 percent of loaded container imports and 0.7  percent of loaded container exports for Port Authority container terminals.

Supply chain's in Japan and beyond have been disrupted by the disaster, including auto parts supply chains linked with the United States,  so some  U.S. businesses have been affected.  Cars and auto parts make up the majority  of the 6.4 percent of imports from Japan into the U.S. annually.  About 4.7 percent of all U.S. exports go to Japan.

The largest amount of containerized cargo that comes to the United States from Japan goes through the west coast and is railed to destinations in the U.S., noted Ricky Kunz, Port of Houston Authority Vice President Origination.   That includes most auto parts bound for the Toyota plant in San Antonio.

Some impact is expected to be seen in movements of steel because of Japanese plants shutting down.

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.

View full article

Galveston to be Containerized?

This article caught our attention,  as our warehouse is only about 45 minutes from the Port of Galveston, and this could be of interest to many of our customers.
Breakbulk Staff   Tue, 02/22/2011 - 15:35
Breakbulk Online - News Story

Breakbulk port may accept new investors, add boxes to mix

The Port of Galveston, Texas, could be adding containers to its mix of breakbulk, project, bulk and cruise business if a proposed partnership between Hutchison Port Holdings and The Carlyle Group comes to fruition.

The possibility was announced earlier this month when the port’s governing Wharves Board asked port staff to negotiate an agreement for a 75-year master lease with the partnership.

Hutchison wants to bring containers to Galveston, which has been concentrating on breakbulk, ro-ro and project cargo, including high volumes of wind turbine components. The port has gone after container business in the past but the attempt sagged in the face of nearby Houston’s massive operations. The port auctioned off its rusting container cranes several years ago and dedicated the contianer terminal to ro-ro and other breakbulk cargoes.

The new agreement is likely to add containers to the present mix rather than be a major shift, according to Capt. John G. Peterlin III, senior director of marketing and administration for the Port of Galveston.

As outlined, the Hutchison deal would include a new 100-acre container terminal on the west end of Galveston Island, a 20-acre terminal for ro-ro cargo such as farm and industrial vehicles on the east end, and possibly a second container terminal on nearby Pelican.

Galveston’s Wharves Board of Trustees last April hired the Bank of Montreal to look for private investors for the port. Of 80 firms solicited, only the Hutchison-Carlyle joint venture, formed expressly to bid on the Galveston project, was found acceptable by BMO. Hutchison Port Holdings operates more than 50 ports worldwide and handles between 10 and 15 percent of the global container market. The Carlyle Group is a private equity firm based in Washington, D.C.

If an agreement is reached the Port would recieve an approximately US$60 million debt pay off, a share of revenue and profits from cruise and freight business, cash for capital improvements over a 10-year period, and other cash payments. A master lease proposal could be brought before the Wharves Board by this summer, according to local news outlets.

.

Texas Port Watch: A Year in Review

In 2010 nearly 15,000 ships called on Texas ports – an increase of 11.4% over 2009. 68% of those vessels steamed into Galveston Bay bound for the ports of Galveston, Texas City or Houston. The port of Houston received the lion’s share of those vessels accounting for 47% of the State’s entire volume of deep water arrivals. All told, 2010 was a welcome respite from the doldrums of 2009.

The port of Galveston saw the most impressive gains of the year with a 52% increase and ended the year with a 13% increase over the month of November. Energy appeared to be a dominant feature in the rebound as the energy-centric ports of Texas City and Sabine registered nearly identical annual increases of 22%. Albeit Texas City posted identical month-to-month numbers while Sabine saw 13% more vessel arrivals in December as compared to November.

The Port of Houston experienced a modest gain of 2% over November’s vessel arrival count and finished the year with an annual gain of nearly 8%. There were some interesting month-to-month figures as the year came to end. Specifically, the private docks which comprise the vast majority of the vessel arrival numbers – approximately 70% - were down 1% for the month. Conversely, the public dock vessel numbers were up 11% with general cargo leading the pack. In fact, this category was up 20% in December for the entire port.

Another December trend was that the majority of the storage facilities along the Houston Ship Channel were down – a not unusual event given end-of-year-tax considerations associated with bulk tank farm inventories. Nonetheless, for the year, most of the terminals that handle crude and chemicals saw ship arrival gains in the range of 9 to nearly 30%. This should not come as a surprise as December’s tank vessel arrivals was just 2 shy of August’s high of 317 – a 3.5% increase from November.

Judging by preliminary reports for January vessel movements, it is likely the upward trend will continue into the Spring as crude prices remain strong and natural gas prices continue to firm. Hopefully, trade activity for Texas ports will reflect a modest return to those heady trade days prior to the onset of the Great Recession.

-Tom Marian, Buffalo Marine Service