Dry Bulk Trade Runs Aground as Texas Flooding Hits Key Ports

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Severe flooding in Texas has disrupted inland operations of major dry bulk ports in the state, delaying shipments and has the potential to create vessel backlogs. The resulting supply chain congestion would tighten vessel availability, especially in the Atlantic basin, and is expected to drive up freight rates in the region, particularly for time-sensitive cargoes such as grains and fertilisers, reports Drewry.

The recent severe flooding in Texas has affected the inland operations of the state’s major dry bulk ports including Port of Corpus Christi, Port Houston and Port of Galveston. The three key ports collectively handle over 25 million tonnes of dry bulk commodities annually and would experience widespread disruption as floodwaters have damaged inland infrastructure which would impact vessel traffic.

Ports in Peril: Texas Flooding Disrupts Critical Dry Bulk Routes

Dry bulk exports from these ports—including grain, soybean, steel products, fertilisers and coal—are impacted. Meanwhile, imports of essential materials such as cement, iron ore, barytes, aggregates, salt and fertilisers have been affected as well. More than 60% of the total bulk volumes handled at these ports are imports, with approximately 80% of all cargo throughput being dry bulk, underlining the strategic importance of these gateways in the US bulk commodity supply chain.

Figure 1: Bulk cargo handled at Port of Corpus Christi, Houston, and Galveston in 2024

Figure 1: Bulk cargo handled at Port of Corpus Christi, Houston, and Galveston in 2024

Figure 2: Dry bulk vessels calling at the three ports in 2024

Figure 2: Dry bulk vessels calling at the three ports in 2024

Figure 3: Imports vs exports

Figure 3: Imports vs exports

Figure 4: Share of Dry bulk

Figure 4: Share of Dry bulk

Dozens of vessels might queue up outside the ports, either waiting to discharge cargo or to load outbound shipments. Ships carrying bulk cargoes from origins such as Turkey, Brazil, South Korea, Canada, Vietnam, India, China, Russia, the EU and the Middle East, may face prolonged delays in offloading, depending on the duration of the operational halt and recovery efforts. At the same time, outbound shipments destined for China, Mexico, Brazil, Colombia, Africa, the Middle East, EU, Turkey and India would also face delays.

The backlog is likely to spread through global supply chains, with possible implications for freight rates, contract scheduling and even commodity prices—especially for time-sensitive or seasonally driven cargoes such as grains and fertilisers. If the disruption continues for an extended period, it could tighten vessel availability in the Atlantic basin and shift short-term trade dynamics, including possible diversions to alternative ports.

While the full extent of infrastructure damage is still being assessed, market participants across shipping, agriculture, construction and manufacturing sectors will need to be prepared for unexpected volatilities in future.

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Source: Drewry

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