05/15/2025

Houston Ship Channel Ranked No. 1 U.S. Waterway

BIC Magazine | May 8, 2025

Houston Ship Channel Ranked No. 1 U.S. Waterway

The Houston Ship Channel is once again ranked the number one waterway in the U.S., according to a recent report by the U.S. Army Corps of Engineers (USACE).

Houston’s port handles approximately 12% of the nation’s total waterborne tonnage. 

An incredible 309.5 million short tons of cargo moved through the Channel in 2023, which is the most recent available data, reflecting a 5.3% increase in total tonnage from the previous year and far more cargo than any other port in the nation. In fact, volumes along the Houston Ship Channel are so large that the tonnage gap between Houston and the second-ranked port is larger than 97% of ports in the country. 

“This ranking reinforces just how vital the Houston Ship Channel is for our region and for the entire nation,” said Chairman Campo. “More than three million jobs depend on our Channel, and at Port Houston, it’s our job to protect this asset. With our Channel expansion project, known as Project 11, we are helping ensure this critical waterway remains open, safe, and competitive for decades to come.” 

The 52-mile-long Houston Ship Channel serves more than 200 private and eight public terminals, in industries from petrochemicals and heavy machinery to consumer goods and energy. Its economic influence extends far beyond port gates, supporting 3.37 million jobs nationwide and generating $906 billion in annual economic activity in the United States. 

Chairman Campo also commented on the current tariff situation. “We are, like everyone, analyzing the data and assessing the situation. Tariffs would impact our own expenses at Port Houston, including our STS crane purchases. We support the end goal of strengthening domestic manufacturing and encourage the administration to work with our industry to develop a path forward that minimizes unintended consequences on American workers, exporters and consumers.”  

Regarding Channel expansion efforts, the USACE is set to award their second Project 11 contract for the construction of the Beltway 8 Dredged Material Placement Area. Meanwhile, the two remaining Port-led Project 11 dredging contracts with Weeks Marine and Callan Marine are progressing on budget. The final segment in the Galveston Bay area, between Bayport and Barbours Cut, is anticipated to be fully completed and open to two-way traffic mid-2025. 

Operations updates indicated that the total tonnage across all public terminals through March is down 2%, but this is still an improvement over last month, which saw a decline mostly related to fog.  Container volumes since the start of the year have surpassed 1 million TEU and remain fairly flat compared to 2024. 

The container terminals recorded the busiest March on record, driven by strong export volume, up 13% from last March. It is noteworthy that this was also largely driven by recovery from February’s low performance. Volumes at the multipurpose facilities remained down as well, at 7% since the start of the year, but they rebounded slightly month over month by 2%. This was driven by weak liquid imports and export dry bulk volumes, while steel was up 4% since the beginning of the year.