Container traffic plunged at Port of Houston as safety measures took hold
Container activity at Port Houston slowed to a halt in February as a deadly ice storm shut port facilities for nearly a week.
The impact of the storm and sub-freezing temperatures on both commerce and activity at Port Houston resulted in a tough month as vessel calls and terminal activities were suspended. Container traffic fell 10 percent to 198,763 twenty-foot equivalent units, a measure of cargo capacity, from 255,474 TEUs in Feb. 2020.
Container traffic through the port is down 13 percent for the year, compared to the same period in 2020.
Port Houston leadership made the decision to halt operations during the storm to err on the
side of safety and ensure the well-being of employees, longshore workers, truckers and others, Executive Director Roger Guenther said. Icy conditions made it difficult to operate.
“It was a people issue first and foremost,” Guenther said in statement.
“Ensuring the safety of our team and partners was our top priority.”
The winter storm was an event not unlike a hurricane, which would require the port to close for a similar amount of time, Guenther said. He anticipates they’ll be able to make up the loss in cargo over the next few months. Economists are forecasting a strong recovery as COVID-19 vaccinations bring the pandemic under control and the $1.9 trillion stimulus package boosts the economy.
“We are still forecasting for 2021 to exceed the (cargo) volume in 2020,” Guenther said. “So far the import demand has been really strong starting last quarter of 2020. The demand in Houston is still high. A lot of retailers are interested in moving cargo through Houston.”
Steel volumes were down due to the downturn in the oil and gas sector, but those volumes are expected to begin to increase as the energy industry recovers. Oil prices have risen rapidly in recent weeks, pushing crude to about $65 a barrel.
Oil settled in New York Tuesday at $64.80 a barrel, down 59 cents.
“We are hopeful that tonnage will begin looking better in the months ahead, with energy prices on the rise that may spur an increase in drilling activity and demand for pipe,” Guenther said.
Wind turbine activity, meanwhile, was up considerably again in February 2021 as new renewable energy-related cargo growth unfolded. Texas leads the nation in the production of wind energy.