Port Cargo Trends: Georgia, Houston, Hueneme, Mexico, New York/New Jersey

Houston: Double- Digit-First Half 2015 Growth for Steel Imports and Container Traffic

Port of Houston Authority terminals continue operating a record pace, handling nearly 20 million short tons from January through June, according to Executive Director Roger Guenther. He identified loaded containers and steel imports as key drivers, with increases from a year ago of 20 percent and 26 percent, respectively.

"Business has reached its highest levels across several key business lines during recent years," said Mr. Guenther said in his report to the port commission. "And, we must continue to strategically plan for the future opportunities."

As an example of strategically providing the right services for its customers and creating opportunities, Mr. Guenther reported that the port authority has successfully assumed full operations of the Maersk terminal as part of a mutually agreed lease termination authorized by the port commission in May. As operator of the entire terminal property, the port authority can distribute container volumes more evenly between its two container handling facilities. The result, it says, will be better service to trucks through common gates, more flexibility to ocean carriers and greater efficiencies in the container yards. Maersk Line, and its affiliated shipping services, SeaLand and Safmarine, will continue to call Port of Houston Authority terminals as common carriers.

Port Hueneme Cargo Numbers Set Record

The Port of Hueneme ended its fiscal year on June 30, with cargo totaling a record 1,574,903 metric tons, up 9.5 percent from the previous high, set just the year before, in FY 2014.

The port’s auto trade remained strong, up 10.6 percent year/on/year to more than 321,000 vehicle units. Strong freight activity growth was seen in the port’s other niche markets of high and heavy cargos, fresh produce, fertilizer, and domestic commodities.

Automobile imports which account for 60 percent of the port’s business revenues, jumped 14.6 percent, due in large part, the port says, to foreign manufacturers redirecting autos intended for other markets to Hueneme and other ports for temporary handling." Among the top importers were BMW, Hyundai, and Kia.

Auto exports, which generate just 2 percent of port revenues, were undercut by the strengthening of the U.S. dollar, dropping 26 percent from last year’s total.

Wallenius Wilhelmsen Logistics (WWL), the port’s leaving handler of agricultural and heavy equipment cargo, also provides shipping and technical processing for automobiles. "While shipping volumes for cargo in the heavy equipment segment have remained relatively flat, vehicle activity in 2015 has surged upwards of 40 percent as compared to 2014," said Len Mazzella, WWL’s head of port operations for the West Coast & Gulf.

Banana imports remained strong at 655,643 tons. Total fresh fruits and vegetables (including bananas) handled by port customers grew by 5 percent. Fresh fruit and vegetables (other than bananas) increased by 34.1 percent, thanks in part to citrus exports to Japan and South Korea and imported grapes and blueberries from Chile.

Said Del Monte Port manager Chuck Caulkins: "Del Monte Fresh Produce continues to perform strongly, underscoring the importance of international trade for job creation and economic development both locally and across the state."

Another port customer, Yara North America Inc., ships liquid bulk fertilizer and Air1 Diesel Exhaust Fluid (DEF) through Hueneme to markets across North America. DEF is a high purity solution of urea used to chemically reduce NOx emissions from trucks, buses and other units powered by diesel engines. Yara’s port volume rose 15 percent in FY 2015.

Shallow draft cargo (fish, lube oil, and vessel fuel) grew by 4.2 percent, while general cargo (excluding fruit and autos) skyrocketed 54.3 percent.

"This year’s cargo performance sets a new milestone for the port," said Port Director Kristin Decas. "This achievement is driven by our customers and business development team." Ms. Decas, who is also AAPA chairman of the board, concluded by pledging to continue "our partnerships and strategic planning to maximize the social and economic benefit the port brings to our community and industry sectors."

Mexico: First Half 2015 Gains for Containers, Breakbulk, Autos, Cruise Traffic

Mexico’s port system processed nearly 142.2 million metric tons of cargo during first half 2015, an increase of just 0.2 percent from a year ago, according to "preliminary" data compiled and reported by the federal port agency, Coordinación General de Puertos y Marina Mercante. Imports accounted for 47.8 million tons (+10.7 percent), exports for 58.2 million tons (-5.7 percent) and domestic shipments for 36.1 million tons (-2.4 percent).

The first half was marked by strongly positive performances by the container, breakbulk, and auto trades, more modest gains for agribulks and petroleum, and declines for bulk minerals and non-petroleum liquid bulks. Mexico’s cruise industry also performed well, with increases from a year ago for passengers (+9.0 percent) and cruise ship arrivals (+5.8 percent).

The attachment provides additional detail.

New York/New Jersey Container Volumes Set Record

Cargo containers are moving at a record pace through the Port of New York and New Jersey. As reported by the port authority, first half 2015 volume totaled 3,093,789 TEUs, beating by 13.4 percent the previous record, 2,727,554 TEUs in 2014.

ExpressRail, the Port Authority’s ship-to-rail system serving New York and New Jersey marine terminals, continues to garner a growing share of containers moving in- and out of the port. First half volume totaled 257,103 containers, up 15.1 percent from last year’s 223,374 containers.

The agency has invested more than $600 million in ExpressRail and plans to build a new ExpressRail facility in Greenville Yard in Jersey City. Port road, rail and security projects are now funded by portwide Cargo Facility Charges.

The port authority also reports vehicles handled by auto processors serving the port jumped from 172,375 units in 2014 to 226,053 in 2015, a 31 percent increase that it credits in part to an Auto Incentive Program launched in 2014.

"Port Director Rick Larrabee is retiring on a high note with cargo volumes at record levels thanks to strategic initiatives he led including the 50-foot channel project, investments in our port’s environmentally friendly rail network, upgraded port roads, and our award-winning Clean Air port strategy," said Port Authority Executive Director Pat Foye. "He leaves the Port of New York and New Jersey with a strong outlook for continued growth in jobs and economic activity as the pre-eminent East Coast port, and our project to raise the Bayonne Bridge underway. This week we welcome Molly Campbell as our new port director who I am confident will build on Rick’s accomplishments in the years to come."