Houston fares well in February container market

Port of Houston said monthly volumes benefited from strong exports and cargo diversion.    East Coast ports are not the only ones experiencing a bump in volumes associated with cargo diversion from West Coast counterparts choked by congestion.
   In February, the Port of Houston’s Barbours Cut and Bayport container terminals handled 169,681 TEUs, a 23.9 percent increase on a year-over-year basis. Loaded import boxes shot up 44.3 percent to 66,518 TEUs, while exports rose 15.6 percent to 73,014 TEUs. Houston terminals handled 8.9 percent more empty containers for a total of 30,149 TEUs, according to port authority data.
   Container volume at Port of Houston is up 11.5 percent to 338,335 TEUs for the first two months of the year.
   The Port of Houston Authority said diversion contributed to container growth, but that South America East Coast, Europe and Mediterranean markets all had more exports.
   Houston, which is best known for its petrochemical and oil facilities, experienced a 20.5 percent increase in tonnage to 3.94 million tons compared to February 2014.    
   An almost 50 percent increase steel imports contributed to the strong February numbers, but steel volumes are expected to subside in the coming months as inventory levels stabilize and demand reflects crude oil market prices. Earlier this week, railroad operator Kansas City Southern said it was also moving less steel because of the downturn in drilling in the oil patch due to low oil prices.
   The port authority said year-to-date revenue is up 24 percent compared to 2014, with cash flow of $24 million. February’s operating revenue of $23.7 million is 32 percent higher than a year ago. Port authority revenues have exceeded the prior month for 13 consecutive months.
   “With this recent activity, along with the anticipated surge of resin exports in the next couple of years, we continue to assess capacity requirements at our container facilities to ensure we stay in front of the demand curve,” Executive Director Roger Guenther said in a statement. “We believe that there may be a need to adjust and accelerate our plans.”
   At Tuesday’s board meeting, commissioners approved the expedited design of Bayport’s Container Yard 6.