Here are four takeaways from Thursday’s panels and discussions.

Trump tariff plan threatens freight industry

On the campaign trail, Trump said he would impose tariffs of 10 to 20 percent on imports entering the United States, with tariffs of up to 60 to 100 percent on all products from China.

The goal of the tariffs is to pressure U.S. companies that manufacture overseas to move production to the United States, Trump said.

The effect of tariffs on shippers, logistics providers and carriers was discussed in several roundtable discussions throughout the day.

“With import tariffs, does the increase lead to increased returns and relocations to Mexico? asked moderator David Hudson, president of Industrial at The Hanover Co., during a discussion titled “Bridge to Growth: Leveraging Port Houston’s Freight Base for Success.” “Do you foresee a time when exports will become the primary means of transportation for ocean carriers due to increased tariffs? If this happens, what impact would it have on US production and exports?

Alex Buck, president of the supply chain solutions group at Houston-based Quantix, said the impact of tariffs on a company’s bottom line could largely depend on the demand for shipping capacity throughout the year. the supply chain.

Quantix is ​​a provider of supply chain services to the chemical industry, including the transportation of dry bulk and liquid chemicals. The company has facilities throughout the country, including the Gulf Coast region serving Port Houston. The port is the nation’s premier gateway for resin exports, handling approximately 60% of all resins exported from the United States in 2023.

“We’ve seen a huge increase in shipping rates post-COVID, and if the demand for resin exists overseas, as we saw post-COVID, exports will continue,” Buck said. “If we see an increase in current demand and tariffs, it will have a very significant impact on exports. That just won’t make it profitable, and that will outweigh the arbitrage we have here from a price/earnings perspective.

Carl Bentzel, commissioner of the Federal Maritime Commission, said Trump’s tariffs could further change global manufacturing patterns.

Bentzel was appointed to the commission by then-President Trump in November 2019. His term on the FMC ends in December.

“I wonder if companies will change their manufacturing models and locate elsewhere, like Vietnam or Mexico,” Bentzel said. “We are already seeing relocation due to the pandemic. When the CEOs first came in and started talking to their logistics managers, they said, “Well, I want to sell 20% more this year, and I’m not getting what I need.” So do it. Logistics managers are therefore turning to nearshoring. Mexico is a place. There are a lot of problems with ports there. I don’t know the answer, but I think you’ll see some alternatives.

Attracting and retaining workers: a challenge across all supply chains

Across all sectors that serve the global freight industry, finding skilled workers is increasingly becoming a challenge, business players and facilitators said.

Buck said finding and retaining talent is difficult in today’s market.

“It’s a huge problem for us,” he said. “We have a lot of high churn jobs, and I think Houston, actually, for us, is much better than the East Coast. There is a lot of knowledge about resin packaging and exporting here, so we have a much wider pool of people to choose from, but you need to understand the particularities of each region. For example, East Coast workers hate working overtime. They want to work 40 hours. You need to set up your entire work schedule to handle this. Houston, if you don’t offer overtime, you won’t have someone to work in your establishment. We’ve had to learn this as we’ve gotten into the export business over the last five years. Then, once that’s done, how do you keep employees? This is the biggest problem because we lose money every time we train someone and they leave. We cannot continue to increase wages. Otherwise, we will go bankrupt.

Keys to Supply Chain Success: Digital Connectivity and Consistency

Shenna Bennett, director of global logistics at Dow Chemical, said one thing she would like to improve throughout the supply chain is digitally connected infrastructure.

“The key to success for all of us, in the long term, especially when we are competing with other ports, other gateways and the United States is competing with other global ports and the international shipping, is digitally connected infrastructure,” Bennett said during a panel discussion titled “Port Houston – The Natural Export Gateway.” “Digital connected infrastructure needs to come into play here, where we are all connected and can manage the flow of materials and products accordingly. »

The panel discussed the factors that make Port Houston a natural gateway for exports, including its location and infrastructure.

Terry Glass, vice president of polymers at Argus Media, said consistency is another important factor in the ports’ success.

“Consistency is really the key thing, from a resin producer’s perspective, that they need to be able to predict,” Glass said. “Transparency is important to be able to plan. What the industry really cannot tolerate are these changes, fluctuations and spikes, especially outside the United States. When we look at global trade, I see a lot of it in Latin America, where we can see prices go up in a month by $3,000. at $5,000 for a container. These are just some of the key elements we need to have more consistency.

Port Houston’s $1 billion Project 11 expected to be completed in January 2026

The Houston Ship Channel expansion — known as Project 11 — recently saw the completion of its fifth contract on budget and six weeks ahead of schedule, officials said.

The billion-dollar effort began in June 2022 and is expected to be completed in 2026.

Weeks Marine is expected to complete hydraulic dredging in the Redfish to Bayport segment by the end of the month, providing a completely expanded navigation channel through Galveston Bay to the Bayport Ship Channel.

Highlighting the immediate benefits of the updated canals and Project 11, Port Houston handled the largest container ship to date in its history when the 11,356 twenty-foot equivalent units CMA CGM Cassiopée arrived at Bayport Container Terminal on September 24.

“The Houston Ship Channel is not just a waterway, it is the lifeline of our region, our state and our nation,” said Charlie Jenkins, CEO of Port Houston. “The maritime canal is the engine of our economy. It is critical to boosting U.S. exports and ensuring goods from around the world arrive at your doorstep with more than 200 public and private facilities alongside it.