Tag Archives: exports

The Port Authority is working with the U.S. Army Corps of Engineers and other representatives of the federal government, as well as Port of Houston and Houston Ship Channel stakeholders, to obtain authorization, and accelerated funding and completion, of a deepened and widened ship channel. This project will be the eleventh significant widening and deepening of the channel since its conception.

The commission was briefed on measures to make sure widening of the entire Galveston Bay reach of the ship channel is part of the next Houston Ship Channel dredging project. The commission also directed staff to bring it proposals for Port Authority and industry funding to support this accelerated effort.

In addition, after careful consideration of interim measures to address growing traffic, the commission adopted a resolution to further maximize current two-way traffic transiting the Houston Ship Channel.

The Houston Ship Channel is experiencing tremendous growth. Houston, the country’s No. 1 export city, is home to the largest petrochemical manufacturing complex in the Americas. Energy production and the export of crude oil, and the increasing global demand for chemicals produced in the region, are major drivers of this success. Expansion of the Panama Canal, the growth of vessel sizes, and the region’s population growth have also resulted in record container demand, both for imported consumer goods and exported manufactured products, further driving the need for improvements to the channel.

In order to ensure continued safe, unimpeded traffic of neo-panamax container vessels and other ships, under the terms of this new business rule, only one vessel that imposes “one-way traffic” on all deep-water ships transiting the Houston Ship Channel within Galveston Bay to call facilities within the Port of Houston may call on a Port Authority terminal in a given week, an interim solution intended to ensure unencumbered access to upper channel reaches.

The commission also budgeted $500,000 to support a traffic efficiency group for the channel. This newly-formed advisory committee representing multiple channel stakeholders will meet regularly and work in partnership with the U.S. Coast Guard Houston Area Vessel Traffic Service, the Lone Star Harbor Safety Committee, the Houston Pilots, and others. The goal of the group will be to share data and insights and help optimize traffic flow on the channel, in response to continued requests for larger vessels to serve the fast-growing demand of containerized consumer imports, resin and agriculture exports, and the needs of the energy industry.

Since being named Chairman in February, Campo has met with numerous industry stakeholders including shippers, and on March 8 testified on channel matters before the Senate Select Committee on Texas Ports.

About the Houston Ship Channel

The Houston Ship Channel is the 52-mile federal waterway that is home to the greater Port of Houston’s more than 200 private and eight public terminals. Its success is a partnership of the U.S. Coast Guard, the Houston Pilots Association, the Port of Houston Authority, those private terminals, and the vessels that transit it every day.

In 2018, the Houston Ship Channel generated $801 billion in U.S. economic value, supported 3.2 million jobs, and provided $38 billion in tax revenue. In the state of Texas, it generated $339 billion in economic value, sustained 1.3 million jobs, and generated $5.6 billion in state and local tax revenue.

Results from the Houston Ship Channel Economic Impact Study will be released at the next regular Port Commission on April 23 at 9:00 a.m. https://porthouston.com/

The quality of corn assembled for export early in the 2018-2019 marketing year was rated at U.S. grade No. 2 or better on all grade factors, based on the U.S. Grains Council’s (USGC’s) Corn Export Cargo Quality Report, released this week.

“Corn quality information is important to foreign buyers and other industry stakeholders as they make decisions about purchase contracts and processing needs for corn for feed, food or industrial use,” said USGC Chairman Jim Stitzlein. “This report – along with its companion, the Corn Harvest Quality Report – has consistently created value for all stakeholders due to the familiarity of the information and the ability to evaluate year-to-year changes in the U.S. corn crop.”

Average test weight found by the analysis was the same as 2017/2018, indicating overall good quality. Chemical composition indicated similar protein, lower starch and slightly higher oil concentrations than the previous year. The exports had lower average stress cracks, higher average 100-kernal weight, slightly higher average kernel true density and higher average percent of whole kernels and horneous endosperm than in 2017/2018. All export samples tested below the U.S. Food and Drug Administration (FDA) action level for aflatoxins and below advisory levels for deoxynivalenol (DON) or vomitoxin.

The report is based on 436 export cargo samples collected from corn shipments undergoing federal inspection and grading processes at export terminals. It also provides information on grading, handling and how U.S. corn is moved and controlled through export channels.

The report is a companion to the 2018/2019 Corn Harvest Quality Report that provides information about the quality of the most recent U.S. corn crop at harvest as it enters the international merchandising channels.

The reports provide reliable information on U.S. corn quality from the farm to the customer based on transparent and consistent methodology. They each give an early view of grading factors established by the U.S. Department of Agriculture (USDA), moisture content and other characteristics not reported elsewhere. Both reports identify any noticeable changes occurring between these two time periods.

The Council will roll out the new results in a series of crop quality seminars around the world beginning with one in Mexico the first week of April and more in Panama, El Salvador and Colombia in May. These outreach activities help establish clear expectations with buyers and end-users regarding the quality of corn this marketing year.

“The Council’s mission is one of developing markets, enabling trade and improving lives,” said Stitzlein. “To help fulfill this mission, the Council offers this report as a service to our partners. We hope it continues in its role of providing information about the quality of the U.S. corn crop to our valued trade partners.”

 

Read the full report here:  https://grains.org/why-trade-matters/

January exports of U.S. beef and pork were slightly below last year’s volume levels while export value posted mixed results, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef exports slipped 1 percent year-over-year to 104,766 metric tons (mt), but value still increased 3 percent to $642.3 million. Export value per head of fed slaughter pulled back from the red-hot pace of 2018, averaging $284.86, down 3 percent from a year ago. January exports accounted for 12.2 percent of total beef production and 9.7 percent for muscle cuts only, down from 12.4 percent and 10.1 percent, respectively, in January 2018.

January pork exports were also down 1 percent from a year ago at 201,835 mt, with value dropping 9 percent to $494.1 million. Export value averaged $44.75 per head slaughtered, down 12 percent year-over-year. Exports accounted for 23.6 percent of total January pork production, down from 24.7 percent a year ago. For muscle cuts only the ratio was 20.3 percent, down from 21.5 percent.

Results for both beef and pork were bolstered by stronger variety meat volumes. Beef variety meat exports totaled 26,630 in January, up 7 percent from a year ago, valued at $81.8 million (up 19 percent). This was fueled by strong performances in Japan, the ASEAN region and Africa. Pork variety meat exports climbed 5 percent year-over-year to 41,143 mt, led by increases in Mexico, Japan, Central and South America and Taiwan. But value was still down 11 percent to $81 million, because exports to China, the leading market for U.S. pork variety meat, remain subject to China’s 50 percent retaliatory duties.

Japan, Korea set strong early pace for 2019 beef exports

January beef exports to leading market Japan increased 8 percent year-over-year to 25,925 mt, valued at $167 million (up 12 percent). Variety meat exports to Japan (mainly tongues) were especially strong, soaring by 36 percent in both volume (4,645 mt) and value ($31.4 million). January was the first full month in which competitors of U.S. beef received tariff relief in Japan under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with the import duty rate dropping from 38.5 to 27.5 percent on Dec. 30, 2018. This gap will widen further on April 1, when the rate for CPTPP countries drops to 26.6 percent.

“It’s great to see Japan’s demand for U.S. beef increase in January despite these tariff rate changes for our major competitors,” noted Dan Halstrom, USMEF president and CEO. “But this disadvantage will become more and more pronounced over time, so negotiations toward a U.S.-Japan trade agreement cannot come soon enough. The playing field needs to be leveled as quickly as possible so that the U.S. industry can continue to capitalize on booming meat demand in Japan.”

Following a record-shattering year, beef exports to South Korea increased 4 percent in January to 17,900 mt, with value up 10 percent to $134.3 million. U.S. beef enjoys a tariff rate advantage under the Korea-U.S. Free Trade Agreement (KORUS), with the import duty rate declining from 40 to 18.7 percent since KORUS was implemented in 2012 (the rates for Australian and Canadian beef are 24 and 26.6 percent, respectively). U.S. beef is benefiting from several new trends in Korea, including mid-priced steak restaurants (also underway in Japan), inclusion of beef cuts such as chuckeye roll and short plate in meal kits sold at retail and through e-commerce, and demand for a wider range of U.S. beef cuts, such as brisket point, in Korean barbecue establishments.

Other January highlights for U.S. beef include:

  • Export volume to Mexico was steady with last year at 21,194, but value climbed 14 percent to $101.7 million. The results for beef muscle cuts were especially strong, increasing 16 percent in volume (12,532 mt) and 21 percent in value ($78.2 million).
  • Led by Indonesia and the Philippines, exports to the ASEAN region jumped 49 percent from a year ago in volume (4,644 mt) and 31 percent in value ($20.7 million). Variety meat exports more than doubled from a year ago to 1,941 mt (up 107 percent), with value up 85 percent to $3.8 million.
  • Strong growth in Costa Rica, Guatemala and Honduras drove beef exports to Central America up 39 percent to 1,508 mt, while value was up 36 percent to $8 million.
  • Exports to Taiwan were steady with last January at 4,215 mt, but value was down 12 percent to $36.8 million.
  • A slow month in Hong Kong partially offset growth in other markets, as exports fell by 36 percent in volume to 7,047 mt, while value was down 28 percent to $57.4 million.

Amid trade disputes, smaller markets step up demand for U.S. pork

Retaliatory duties continued to pressure U.S. pork exports to Mexico in January, with volume down 9 percent from a year ago to 66,293 mt. Export value absorbed an even harsher blow, dropping 28 percent to $96.1 million. While the U.S. is still Mexico’s main pork supplier, Canada’s January exports to Mexico were up 26 percent to 11,500 mt and EU exports increased 91 percent to 305 mt. Chile’s volume was steady at 690 mt.

Exports to China/Hong Kong also felt the sting of China’s retaliatory duties, dropping 16 percent from a year ago in volume (26,744 mt) and 32 percent in value ($53.2 million).

While Japan’s import duties on U.S. pork remain unchanged, CPTPP countries received tariff relief at the end of 2018 and will see another rate decrease on April 1. This likely contributed to the January decline in U.S. pork exports to Japan, which were down 6 percent from a year ago in volume (32,910 mt) and 8 percent in value ($135.2 million). Lower duty rates for European pork under the Japan-EU Economic Partnership Agreement (EPA) were implemented Feb. 1, so the EPA’s impact was not yet reflected in Japan’s January import data.

“Trade barriers in these large, mainstay markets are very unsettling for major customers of U.S. pork and are hurting the entire U.S. supply chain, so it is essential that they are addressed in a timely manner,” Halstrom explained. “On a positive note, the U.S. industry’s longstanding efforts to expand and diversify international destinations for U.S. pork have never been more important, and it is gratifying to see impressive growth in many of our emerging and developing markets.”

January highlights for U.S. pork include:

  • Led by continued record exports to Colombia and a surge in shipments to Chile, pork exports to South America increased 57 percent in volume (12,752 mt) and 61 percent in value ($31.3 million). Exports were also higher year-over-year to Ecuador and Uruguay.
  • Strong growth in Panama, Costa Rica and Guatemala moved exports to Central America 18 percent higher year-over-year in volume (7,271 mt) and 15 percent higher in value ($16.6 million).
  • Exports to the Dominican Republic remained on a roll, increasing 29 percent from a year ago in both volume (3,289 mt) and value ($7.2 million).
  • Growing exports to Canada (16,165 mt, +13 percent) indicate the U.S. is backfilling Canada’s product needs as more Canadian pork is bound for China, Japan and Mexico. Canadian pork production is not increasing, therefore Canada needs to import more U.S. pork to meet domestic demand. This situation will continue until retaliatory tariffs on U.S. pork exports to China and Mexico are removed and could intensify across other markets as China’s buying ramps up due to African swine fever.
  • Pork exports to both Australia and New Zealand were higher year-over-year in January, pushing results for Oceania up 22 percent in volume (9,272 mt) and 12 percent in value ($24.8 million).
  • Led by excellent growth in the Philippines and Singapore, exports to the ASEAN region were up 28 percent in volume (3,895 mt) and 25 percent in value ($9.9 million).
  • Strong demand in Taiwan pushed January exports to 2,561 mt (up 153 percent) valued at $4.9 million (up 70 percent). The results for pork muscle cuts were even more impressive, nearly tripling in volume (1,780 mt, up 196 percent) and climbing 149 percent in value to $3.8 million. Taiwan is importing less pork from the EU and Canada so U.S. pork is gaining market share, climbing from 9 percent in January 2018 to 19.5 percent this year.
  • Pork exports to Korea eased from the record-breaking pace of 2018 but remained strong at 18,491 mt, down 2 percent year-over-year, with value down 8 percent to $50 million.

Lamb exports trend higher in January

Muscle cut growth in the Caribbean and the United Arab Emirates, along with continued strong demand for variety meat in Mexico pushed January exports of U.S. lamb to 1,384 mt, up 87 percent from a year ago. Export value was $2.13 million, up 45 percent. For muscle cuts only, exports climbed 94 percent from a year ago in volume (244 mt) and 49 percent in value ($1.17 million).

Complete January export results for U.S. beef, pork and lamb are available from USMEF’s statistics Web page.

Monthly charts for U.S. pork and beef exports are also available online.