Gulf Coast ports post sluggish cargo movements in September

Port Houston handled 329,462 twenty-foot equivalent units in September, a 1% increase from the same year-ago period but a 10% decrease compared to August. (Photo: Jim Allen/FreightWaves)
Port Houston handled 329,462 twenty-foot equivalent units in September, a 1% increase from the same year-ago period but a 10% decrease compared to August. (Photo: Jim Allen/FreightWaves)

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Ports in Houston and Corpus Christi, Texas, posted modest gains in freight movements during September, while the Port of New Orleans saw mixed results in container and breakbulk shipments.

Port Houston’s monthly container flows up slightly in September

Port Houston handled 329,462 twenty-foot equivalent units in September, a 1% increase from the same period in 2023.

Loaded imports were up 4% year over year at 162,338 TEUs, while loaded exports were down 8% year over year in September at 114,299 TEUs.

Overall, container volume is up 9% year to date at Port Houston’s terminals, totaling 2.6 million TEUs. Total container tonnage is up 9% year to date at 28.4 million tons.


“General cargo is still down for the year, but the steel market is slowly improving,” Charlie Jenkins, CEO of Port Houston, said during the port’s monthly commission meeting on Tuesday. “Total TEU volumes remain very, very strong in the container market.”

Imports of steel products were up 25% year over year to 435,152 tons in September.

“The big impact on the general cargo is really the loss of autos and loss of Volkswagen,” Jenkins said. “Autos are down 89% year to date for the shift into that customer.”

Volkswagen Group of America announced in 2022 that it was moving its North America automotive shipping hub from Houston to the Port of Freeport, Texas. Earlier this month, Volkswagen launched the $114 million automotive terminal in Freeport, aiming to handle up to 140,000 passenger vehicles annually.


Port Houston recorded 689 ship calls in September, compared to 688 in the same month in 2023. The port reported 314 barge calls in September, a 9% y/y increase.

Jenkins also gave the commission an update on tariffs for the port’s purchase of eight electric ship-to-shore container cranes for more than $113 million in July.

Related: Gulf Coast ports slam US tariffs on Chinese container cranes

Port Houston officials said they will have to pay $28.5 million in duty fees for importing eight ship-to-shore cranes from China. (Photo: Port Houston)
Port Houston officials said they will have to pay $28.5 million in duty fees for importing eight ship-to-shore cranes from China. (Photo: Port Houston)

The cranes are being manufactured by Zhenhua Heavy Industries Co., a China-based, state-owned company and the world’s largest manufacturer of container cranes, accounting for over 70% of the world market.

Under tariffs on Chinese imports initiated by the Biden administration in May, the eight container cranes are subject to a 25% duty, about $28.5 million in taxes.

In September, U.S. Trade Representative Katherine Tai announced that Chinese-made ship-to-shore cranes ordered prior to May 14, 2024, and cranes that enter the U.S. prior to May 14, 2026, would be excluded from the tariffs.

“Our team worked diligently to have these cranes covered in a previous order before the tariffs went into effect, if at all possible,” Jenkins said. “Unfortunately, only three cranes we ordered are covered under the rules. The eight cranes ordered in July are still underneath the tariff, with the total impact about $28 million. I believe we’re the only port impacted in the nation with this tariff, and it’s a pretty big hit.”