Port Houston Gets USDA OK to Directly Handle Cold Treatment Cargo
[Stay on top of transportation news: Get TTNews in your inbox.]
The U.S. Department of Agriculture has granted authority to Port Houston to handle cold treatment cargo, creating an opportunity for drayage companies in the region to increase cargo volume and expand business.
“This new USDA designation improves the cold chain for importers in Texas and surrounding states by shortening transit time and reducing cost, ultimately improving product quality for importers using Port Houston,” John Moseley, chief commercial officer at Port Houston, told Transport Topics. “This new designation is a major step change for consumers and importers using Port Houston. [It] will allow Port Houston to handle perishable, reefer cargo that completes its treatment while in transit."
The CT process is critical to mitigate the risk of pests in fresh produce. CT-treated cargo can come from South America, South Africa, southern Europe and the Mediterranean. By maintaining specific temperatures for a designated period, CT ensures fruits and vegetables can safely be imported into the United States without introducing harmful pests from other countries.
“Previously, CT cargo had to complete its treatment at a transshipment port before being shipped to Houston, or the produce [was] imported via faraway ports and trucked to Texas,” Moseley said.
Port Houston has been approved by the United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) to handle cold treatment cargo; enhancing service opportunities for fresh produce cargo in the region. Read here: https://t.co/UcDLOqpbrK pic.twitter.com/6XLecxLRJy — Port Houston (@Port_Houston) July 26, 2024
Port Houston received the OK on July 17 to handle CT cargo from USDA’s Animal and Plant Health Inspection Service, whose stated mission is to protect the health and value of American agriculture and natural resources. Having USDA authorization means the port can receive and manage shipments from vessels that complete the CT process while in transit on the water.
“This is a positive improvement for truckers, and it translates to more business for drayage companies, more volume,” Moseley said. “And with our new express lane program and improvements made at our terminals, that are experiencing sub 45-minute turn times for transactions inside our facilities, this will be a bonanza for the trucking communities and cold storage facilities that have recently opened or expanded in Houston.”
Moseley
Port Houston now can accept a wider range of perishable products, including citrus fruits, grapes and other high-value produce that require precise temperature controls during transportation.
“This will impact many types of cargo, but in particular, we are anticipating a strong surge of blueberry and grapes once their seasons start in September and mid-October, respectively, with products originating from places like Chile, Peru and Ecuador,” Moseley explained. “We previously handled CT-treated cargo, but again, it had to complete treatment at a transshipment port or delivered to a port in a different state before being trucked to Texas, which added time and money to the cold chain.
“Texas is big and we have a lot of consumers, but this [port] gateway covers Middle America and also provides greater access and closer proximity to the western United States as well versus Atlantic ports.”
For more than 100 years, Port Houston has owned and operated eight public wharves and terminals — including the area’s largest breakbulk facility and two container terminals — along the Houston Ship Channel.
During the first half of this year, the port handled just over 2 million 20-foot equivalent units across its terminals, a 13% year-to-date increase. Last year, the port’s two container terminals handled 3.82 million TEUs, down 4% compared with 2022. Another 4% annual drop was seen in 2023.
“In June, increased demand for goods and consumer spending on items such as furniture, hardware, retail goods and food drove Port Houston’s loaded import volumes up 5% compared to the same month,” the port noted. “Loaded exports also increased significantly, up 11% this month, totaling 114,728 TEUs.”
Ediger
Houston produce importer and distributor Jacquie Ediger, executive vice president of Pro Citrus Network and Houston-based Foremost Fresh Direct, said the CT approval will help the port increase its volume of perishables cargo while enabling customers to receive the freshest, most cost-effective produce possible.
“Port Houston is a small part of the supply chain for CT-treated cargo, but we are very proud to have had such a big influence on it. However, we were not alone,” Moseley said. “We have a good relationship with the federal government and the private sector, and we are pleased to share credit for this progress.
“Port Houston is the fifth-largest container port in the U.S. and is among the fastest growing. We encourage the produce import community to seriously consider trying Houston.”
Want more news? Listen to today's daily briefing below or go here for more info:
