WorldCity, 1Q: China, Algeria, Colombia lead way as trade increases 14% | Connecting Local Business Leaders To The Global Economy

1Q: China, Algeria, Colombia lead way as trade increases 14%

June 2nd, 2006

Houston’s trade with the world increased at a less torrid rate than 2005 but was still up a respectable 14.4 percent in the first quarter of 2005, according to the most recent U.S. government statistics and WorldCity analysis.

In 2005, Houston was the nation’s fastest-growing Customs district, in dollar terms. It leapfrogged past New Orleans to end the year as the nation’s No. 4-ranked Customs district with $136.1 billion in imports and exports, largely due to the enormous increase in oil prices.

New Orleans has retaken the No. 4 ranking, through the first quarter.

Houston’s storyline for the first quarter is not much different than the story last year with the exception of China. Both Algeria, which moved up two notches to rank as Houston’s No. 8 trade partner through the first quarter, and Colombia, which climbed seven slots to No. 11, are big oil importers.

Colombia’s imports of crude oil, for example, doubled from the first quarter of 2005 and quadrupled from the similar period two years ago.

China, with an 89.6 percent increase in imports, is now Houston’s No. 3-ranked trade partner behind Mexico and Venezuela. China was No.9 just three years ago.

Houston’s total trade was $33.7 billion in the first quarter. For the first time, the Top 10 trade partners all surpassed $1 billion in the first quarter, up from seven last year. The new entrants are the United Kingdom, Algeria and the Netherlands, home to the large transshipment seaport of Rotterdam.

The Netherlands receives more of Houston’s exports than all but one other nation, Mexico, in fact. Brazil is the third-largest recipient of Houston’s exports. A statistical oddity: Even though China is an import machine, it’s import rank with Houston is actually lower than its overall No. 3 ranking. It ranks No. 4 behind No. 1 Venezuela, Mexico and Nigeria.

Imports accounted for $21.6 billion of Houston’s $33.7 billion in total trade, increasing at almost 18 percent in the first quarter. On the import side, the Port of Houston is the largest player, with $13.4 billion, followed by the ports at Corpus Christi ($3.3 billion), Freeport ($1.8 billion), Galveston ($1.3 billion), Texas City ($1.1 billion) and Lavaca ($93 million). Houston International Airport accounted for $905 million in the first quarter.

On the export side, the Port of Houston still dominates, with $9.2 billion through the first three months of the year, but Houston International Airport, which has an overall trade surplus, is second, with $1.6 billion. Corpus Christi ($647 million), Freeport ($325 million), Texas City ($210 million), Galveston ($176 million) and Lavaca ($25 million) follow.