The Port of Houston's Barbours Cut and Bayport container terminals suspended operations today after an employee tested positive for coronavirus, cutting off scrap metal exports from Texas.
The employee worked at the Bayport facility, resulting in the closure of the terminal's gate, vessel, and yard operations earlier today. The Port Authority is conducting an investigation into the situation and closed the Barbours Cut container terminal as a precautionary measure.
The two container terminals handle two-thirds of all containerized cargo in the Gulf of Mexico, according to the Port of Houston.
The port is the main outlet for containerized scrap exports from the region, averaging 4,200 t/month of aluminum scrap, 2,500 t/month of copper scrap and 2,100 t/month of stainless steel scrap in 2019, according to US Commerce Department data. Ferrous scrap exports were estimated at 12,000-18,000 t/month.
At least one Houston area stainless steel processor had already began dropping bids as a result of the closure with further drops expected.
Freight brokers fear that the disruption at the Houston port could be repeated at other ports around the world as the virus spreads, leading to further disruptions in the container shipping supply chain.
The virus has cut down availability of containers in inland markets as well as the effects of the outbreak ripple across the country.
