Tuesday, March 26, 2019
Argus Media reported March 13 that fog had delayed vessel traffic through the Houston Ship Channel every day in preceeding week, delaying shipments of crude, refined products, and other commodities. The ship channel was shut for part of nearly every day in March for a total of 133 hours, according to data from the U.S. Coast Guard (USCG). This follows 232 hours of closures in February and 43 hours in January.
The delays in mid-March caused U.S. phenol and acetone producer AdvanSix to declare a force majeure on phenol at its plant in Frankford, Pa. Propane markets were also affected, with physical premiums versus paper on the Far East Index (FEI) well above $20 a metric ton for late- April propane cargos into Asia.
Argus said the ship channel opened to all vessel traffic March 13, with 45 vessels scheduled to proceed inbound, nine vessels to proceed outbound, and four to shift within port. Fog in Houston is particularly bad in the October-March period as warmer, humid Gulf of Mexico air collides with cooler onshore air. But the temperature difference will balance out soon and fog closures will become less frequent, said Bill Diehl, president of the Greater Houston Port Bureau.
Citing Steve Nerheim, director of USCG vessel traffic service Houston/Galveston, the business information provider outlined that despite the impact on a wide range of commodities, Houston Ship Channel fog conditions have not been especially bad compared with previous years. Diehl echoed that sentiment. “It doesn’t vary much, but every year people think it’s the worst,” he said.
As of March 13, the total closure hours caused by fog so far this year was 408, compared with 537 in all of 2018 and 347 in 2017, according to USCG. The Houston Ship Channel was closed by fog for 680 hours in 2015, the most in recent years. Houston port traffic averages about 65 ships a day, including 40 tankers, according to Nerheim. Shippers sent 260 million metric tons of cargo through the Port of Houston in 2017. An additional 42 million metric tons of cargo moved through the Texas City and Galveston ports.
(SOURCE: The Weekly Propane Newsletter, March 25, 2019)
The delays in mid-March caused U.S. phenol and acetone producer AdvanSix to declare a force majeure on phenol at its plant in Frankford, Pa. Propane markets were also affected, with physical premiums versus paper on the Far East Index (FEI) well above $20 a metric ton for late- April propane cargos into Asia.
Argus said the ship channel opened to all vessel traffic March 13, with 45 vessels scheduled to proceed inbound, nine vessels to proceed outbound, and four to shift within port. Fog in Houston is particularly bad in the October-March period as warmer, humid Gulf of Mexico air collides with cooler onshore air. But the temperature difference will balance out soon and fog closures will become less frequent, said Bill Diehl, president of the Greater Houston Port Bureau.
Citing Steve Nerheim, director of USCG vessel traffic service Houston/Galveston, the business information provider outlined that despite the impact on a wide range of commodities, Houston Ship Channel fog conditions have not been especially bad compared with previous years. Diehl echoed that sentiment. “It doesn’t vary much, but every year people think it’s the worst,” he said.
As of March 13, the total closure hours caused by fog so far this year was 408, compared with 537 in all of 2018 and 347 in 2017, according to USCG. The Houston Ship Channel was closed by fog for 680 hours in 2015, the most in recent years. Houston port traffic averages about 65 ships a day, including 40 tankers, according to Nerheim. Shippers sent 260 million metric tons of cargo through the Port of Houston in 2017. An additional 42 million metric tons of cargo moved through the Texas City and Galveston ports.
(SOURCE: The Weekly Propane Newsletter, March 25, 2019)
