News / US Gulf ports maintain momentum and see containers as 'the way forward'

Port of Houston © Dragan Janovic

The pendulum swing appears to have missed US ports on the Gulf of Mexico, which are beating predictions of loss of container traffic to west coast gateways. Instead, volumes have continued to climb.

Like ports on the east coast, the likes of Houston and New Orleans clocked up double-digit growth in box traffic in 2022/23, partly as a result of importers’ concerns about disruption of flows through the west coast.

In addition to the congestion that had paralysed import flows on the west coast in 2021/22, there were worries about work stoppages, with union and terminal employers renegotiating the labour contract last year.

With the congestion cleared and a new labour contract in place, much of the traffic that had fled the west coast was due to return – more so as ports in the east (including on the Gulf) are now facing labour contract negotiations that seem to be headed for conflict. And, on top of this, the problems with the Panama Canal have given importers morel food for concern.

It seems nobody at the Gulf ports read the script. Container throughput has kept growing at Houston, New Orleans and Mobile.

Houston clocked up 20% annual growth, to 360,991 teu, in March, which brought its total for the first quarter to 1.06m teu, up 15% from the same period in 2023. But the port’s general imports dropped 29%, while loaded imports climbed 23%.

At the port of New Orleans, container traffic in March surged 24%, to 45,214 teu, with box volume for the quarter climbing to 133,845 teu, a new quarterly record, with loaded imports up 19% and loaded exports rising 16%, but breakbulk tonnage slumped 54%.

Mobile reported 53,608 teu for March, an increase of 27%.

Forwarder Team Worldwide has seen an increase in containerised traffic moving through Gulf Coast ports, above all Houston. Bob Imbriani, SVP international, said: “The Gulf has remained a very viable alternative to the west coast and even to east coast ports. We’re bringing much more into Houston.”

While marine side flows have returned to normal, rail and drayage activities at both west and east coast ports have not come back fully, he added.

At this point, pricing also looks favourable, he noted, pointing to recent increases of $1,500, to over $2,000 per container, in rates from Asia to the west coast, which have been more significant than rate hikes to Gulf ports.

While the record low water levels in the Panama Canal caused restrictions on vessel transits and draught last year, some of Team’s customers raised questions about the route, but by and large cargo owners do not pay much attention about routings, said Mr Imbriani. For the most part, they want options on transit times and leave the route selection to the forwarder, he explained.

He sees the Gulf ports poised to see further growth in container traffic, pointing to ongoing investment in container infrastructure as the ports aim to diversify beyond their traditional reliance on bulk and breakbulk cargo, flanked by improved rail service.

“The ports look at containers as the way forward,” he said, adding that box lines have stepped up their service to the region.