Order Code RS22332
November 23, 2005
CRS Report for Congress
Received through the CRS Web
Trade in the U.S. Gulf Region: Hurricanes
Katrina, Rita and Beyond
Mary Jane Bolle
Specialist in International Trade
Foreign Affairs, Defense, and Trade Division
Summary
This report examines trade entering and leaving the United States through the Gulf
of Mexico and its 16 major ports — a region extending from southern Florida to
southern Texas. It is designed as a tool for planning or reaction — as a resource to help
quickly identify some of the potential trade effects of any natural or manmade disaster
that might strike the U.S. Gulf coast. Included are five graphs, a map, and a table
summarizing specific trade data for the 16 ports. Finally, this report looks at potential
trade implications of any such disasters, and identifies some policy issues. It will not
be updated.1
Purpose of This Report
The Gulf of Mexico can be likened to a gigantic harbor whose span is roughly equal
to one-half the distance between the U.S. Atlantic and Pacific coasts. It is not surprising,
therefore, that roughly 80% of the value of all trade that enters or leaves the United States
along the Gulf coast does so by water.
The strength of the Gulf harbor is that it is somewhat protected and centrally located
for easy water access to Europe and the Mediterranean, Africa, South America, or,
through the Panama Canal, Asia. The problem with the Gulf, however, is that, because
of recent weather changes, it has been the site of increased numbers of higher intensity
hurricanes. These include Hurricane Katrina, which struck the Gulf Coast on August 29,
2005, and Hurricane Rita which struck the Gulf coast on September 24, 2005, temporarily
closing or partially closing five of the 16 trade ports2 and paralyzing the massive network
1 Carolyn Smith and Michael Donnelly, KSG-FDT, CRS, provided statistical assistance.
2 See table 1 footnotes for a list of ports affected. For other reports on Hurricane Katrina and its
effects on commerce, see:CRS Report RL33075, U.S. Agriculture After Hurricane Katrina:
Status and Issues, by Randy Schnepf and Ralph Chite; CRS Report RS22257, Hurricane Katrina:
Shipping Disruptions, by John Frittelli; CRS Report RL33124, Oil and Gas Disruption from
Congressional Research Service ˜ The Library of Congress

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CRS-2
of oil and gas facilities, including drilling platforms, pipelines, and refineries. Such
disasters can result in considerable disruption to trade as commodities — some of them
perishable — are delayed, diverted, destroyed, or simply hung up and unable to get
through blocked ports.
The U.S. National Hurricane Center has reported that it expects recent wind and
water temperature changes in the Atlantic Ocean which spawned these more intense
storms to continue — possibly for 25 years or more.3 This report examines trade entering
and leaving the United States through the Gulf of Mexico’s 16 major ports, which
together account for 99% of all Gulf waterborne trade. It is designed as a tool for
planning or reaction — as a resource to help quickly identify some of the potential trade
effects of any natural or manmade disaster that might strike the U.S. Gulf coast. Finally,
this report looks at potential trade implications of any such disasters, and identifies some
policy issues.
Trade Through U.S. Gulf Ports
Along the Gulf lie 16 of the
Figure 1. Composition of Waterborne U.S.
41 largest U.S. ports (see map,
Gulf Trade ($198 billion in Exports and
figure 6, p. 6). Houston, the
Imports), 2004
Gulf’s largest, ranks 4th and
New Orleans, the second largest,
ranks 12th in size (based on total
Gulf Trade as % of Composition of
trade value — see table 1, p. 6)
Total U.S. Trade
Exports + Imports
among all U.S. ports for
Chemicals - 12%
waterborne trade. Three-
Agriculture - 8%
quarters of imports and exports
of the 16 Gulf ports are from
Oil - 52%
Machinery - 6%
Gulf trade - 9%
three industries: oil, agriculture,
Base metals - 7%
a n d c h e m i c a l s . T h i s
specialization results in large
Textiles,apparel - 3%
Rubber & plastics - 3%
part from geography: Because
Other - 9%
the Gulf area has traditionally
been rich with oil and gas, the
Source: CRS calculations on data from World Trade Atlas. See footnote 4.
processing industry for these
resources grew up around them,
making the Gulf a magnet for additional oil and gas imports. The chemical industry and
many of its products derive, in turn, from crude oil. Symbiotically, they also feed into the
agricultural industry. Agricultural exports through Gulf ports owe their abundance to the
barge-based Mississippi River transportation system, which carries products from at least
16 states cheaply and efficiently, and deposits them in New Orleans or nearby ports.
Hurricanes Katrina and Rita, by Lawrence Kumins and Robert Bamberger; and CRS Report
RS22297, Ports in Louisiana: New Orleans, South Louisiana, and Baton Rouge, by Vanessa
Cieslak.
3 Interview with meteorologist Stanley Goldenberg of the National Hurricane Center, reported
in Katrina: Why It Became a Man-made Disaster; Where It Could Happen Next, National
Geographic Special edition, Fall, 2005, p. 35.

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CRS-3
Overall, (See figure 1)
Figure 2. $ Value of U.S. Gulf Exports and
waterborne exports and imports
Imports, 2004
that pass through U.S. Gulf of
EXPORTS:
IMPORTS:
Mexico ports account for less
$62 billion
$136 billion
than one-tenth of U.S. trade
160
(9%), but a much greater share
140
Chemicals - $7
of the oil (52%), agricultural
Base metals - $13
120
(8%), and chemical (12%)
100
industries. The remaining
quarter of that trade is mostly
80
Oil & gas - $96
Rubber/plastic - $4
machinery, base metals,
60
Machinery - $8
t e x t i l e s / a p p a r e l , a n d
Agriculture - $14
40
Oil & gas - $8
rubber/plastics.4
20
Chemicals -$18
Other - $20
Other - $10
0
Figure 2 shows the relative
Source: CRS calculations on data from World Trade Atlas.
size and composition of U.S.
See footnote 4.
Gulf exports and imports
separately: Imports, at $136
billion in 2004, are more than twice the value of exports, at $62 billion; and oil imports,
at $96 billion clearly dominate Gulf imports (accounting for 70%) and account for nearly
half (48%) of all Gulf trade.
Figure 3. Gulf Port Share of U.S.
Agriculture
Agricultural Exports and Imports, 2004
Industry group
Industry
Commodity
The United States is the
(%)
world’s largest agricultural
Exports
Imports
70
62
64
56
exporter, facilitated by the
60
52
50
41
42
42
37
Mississippi River, which is an
40
30
24 22
19 22
important component of the U.S.’s
16
15
20
9
6
10
com pa r a t i v e a d v a nt age i n
0
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agricultural trade. The river is the
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going vessels in New Orleans and
Source: CRS Calculations on data from World Trade Atlas.
See footnote 4.
South Louisiana, and delivers such
imports as coffee back up the river.
Each grain-laden barge can carry the equivalent of roughly 15 rail cars or 60 trucks,
at a fraction of the cost of these other modes of transportation. In 2004, agricultural
exports in the Gulf totaled $14 billion. Of this, $13 billion was in vegetable products, and
nearly $1 billion was in animal products. Vegetable exports (see figure 3) were dominated
4 All data in this report reflect the Harmonized Tariff System, which groups numerous
commodities into 99 industry classifications which are, in turn, aggregated into 22 separate
industry groups. All data are taken from World Trade Atlas, published by Global Trade
Information Services, Inc. and represent export and import data from the Bureau of the Census
manipulated by the U.S. Maritime Administration to reflect waterborne trade.

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CRS-4
by corn (62% of U.S. total), rice (42%), grain sorghum (24%), wheat (22%), soybeans
(64%), and fats and oils (47%). Nearly 40% of all U.S. Gulf “cereal” grain exports go to
four countries: Japan, Mexico, Egypt, and S. Korea. Animal products were dominated by
poultry (mostly frozen) exports, accounting for 37% of all U.S. poultry exports, much of
which goes to Russia.
Oil and Gas
The Gulf of Mexico is one of the great oil and gas production and refining regions
in the world. It is a major region for oil and gas infrastructure, including pipelines, oil and
gas wells, oil and gas platforms, and a refinery at virtually every port. Nearly 60% of all
oil consumed in the United States is imported. Roughly half (see figure 2) of all imported
oil enters the United States through the Gulf — much of it from Mexico, Venezuela, Saudi
Arabia, Nigeria, and Iraq. Primary oil exports are to Mexico and include MBTE, a
gasoline additive/blending component
that has fallen into disfavor in the United
Figure 4. Gulf Port Share of U.S.
States but is used by others elsewhere,
Chemical Exports and Imports, 2004
and such “heavy” products as petroleum
Industry group Industry
coke, which has various uses, and is
something the United States can spare.
(%)
Exports
Imports
70
57
60
50
43
Chemicals
40
29
30
20
17
19
20
7
10
The numerous chemical plants in
0
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the Gulf, particularly along the Texas
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and Louisiana Gulf coasts, account for a
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and imports than does agriculture.
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.)
Twenty percent of all U.S. chemical
Source: CRS calculations on data from World Trade Atlas.
See footnote 4.
exports exit through Gulf ports (see
figure 4), including 57% of all
fertilizers, and 43% of all organic chemicals, to such countries as S. Korea, Mexico, and
China. Twenty-nine percent of all fertilizer imports enter the United States through Gulf
ports.
Other
Figure 5. Gulf Port Share of Other
Major U.S. Gulf Exports and Imports,
2004
Figure 5 shows other major
products exported through Gulf ports and
Industry group Industry
their share of total such U.S. exports
including textiles and apparel: knitted or
(%)
Exports
Imports
50
crocheted fabrics (21%), cotton products
40
36
40
31
(13%), wool (12%); and straw products
30
22
18
21
18
16
20
15 15
(18%). Major products imported through
13 12
12
9
10
10
these ports are base metals (16%),
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including iron and steel (31%), copper
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Source: CRS calculations on data from World Trade Atlas. See footnote 4.

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CRS-5
United States (most of them for the oil platforms), 22% of all salt/sulphur, and 18% of all
cork imported into the United States.
Trade Implications and Policy Questions
The extent to which the key U.S. Gulf industries are affected by disasters in the Gulf
area depends on which ports and industry infrastructures are affected. The 16 key ports in
the Gulf of Mexico are depicted below in map form (figure 6) and in table form (table 1).
For each port, table 1 lists (column 1) the name of the port and its ranking (based on total
exports and imports) among all U.S. ports; the total 2004 trade value (column 2); the total
value of that port’s exports together with major exports and their share of that port’s total
(column 3); and the total value of that port’s imports together with major imports and
their share of that port’s total (column 4).
If some ports are damaged, products can be shipped out of the country through other
ports, but transportation costs may increase and perishable commodities may be lost.
Although figure 6 shows commodity specialization, by port, many ports export high
volumes of key commodities. All 16 ports except Gulfport handle oil as an export or
import and typically include refineries. All 16 ports export chemicals although only 10
specialize in chemical exports. Most grain exports pass through Texas or Louisiana. Only
Pascagoula specializes in exporting poultry, although sizable quantities of poultry (not
shown in table 1) also pass through Mobile, New Orleans Gulf Port, or Houston. Gulfport
specializes in textile and apparel exports.
Hurricane Katrina closed or partially closed five main Gulf ports: New Orleans,
South Louisiana, Mobile, Pascagoula, and Gulfport. Hurricane Rita affected two:
Beaumont and Galveston. Most ports were quickly reopened. While some goods found
other import or export routes, some oil production facilities have still not reopened at the
time this report was published. Currently, monthly statistics on waterborne trade in U.S.
Gulf ports are lagging economic activity by at least seven months. Thus, statistics from
which to estimate changes in the value of exports and imports as a result of these
hurricanes will likely not be available until about mid-2006. Meanwhile, the U.S. Census
Bureau has begun releasing preliminary export and import data for all Gulf ports covering
months since Hurricanes Katrina and Rita struck; however, these data have not been
further refined by the U.S. Maritime Administration. These data are available at:
[http://www.census.gov/foreign-trade/Press-Release/gulf_index.html]. With data from
either source, however, it may be hard to separate out effects of Katrina from other effects
such as overall weather and supply and demand — especially on agricultural products,
which may vary considerably in tonnage and value from year to year.
The potential for additional hurricanes in the Gulf region in the coming years raises
a number of trade policy questions. Some of the most important ones revolve around
options for protecting the trade infrastructure, which includes the Mississippi River, grain
storage elevators, the various ports, oil facilities in the Gulf of Mexico, and U.S. merchant
vessels.

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CRS-6
Table 1. Commodity Specialization by Port: Waterborne Exports
and Imports
U.S. Gulf of Mexico
Total 2004 imports (in $mil.),
Port and rank (total
Total 2004
Total 2004 exports (in $mil.), Major
Major IMPORTS and share
trade value) among
trade value
EXPORTS and share of total Port
of total Port imports for each
all U.S. ports
($mil.)
exports for each industry
industry
$29,064 (mil.): chemicals (32%),
$36,835 (mil.): oil (48%), base
4. Houston, TX
$65,899 machinery (23%), oil (11%)
metals (14%), chemicals (9%)
*12. New Orleans,
$9,579: vegetable products (37%),
$12,592: base metals (37%), oil
LA
$22,171 chemicals (23%), oil (12%)
(24%), chemicals (9%)
$143: machinery (51%) floating
15. Morgan City, LA
$14,277 vessels/docks (29%),
$14,134: oil (100%)
$7,644: vegetable prods. (cereals & oil
*16. S. Louisiana
$14,185 seeds) (79%)
$6,541: oil (73%)
$1,295: oil (51%), chemicals (32%),
**18. Beaumont, TX
$13,287 cereals (15%)
$11,992: oil (98%)
20. Corpus Christi,
$2,043: chemicals (48%), oil (32%)
TX
$11,963 vegetable. prods. (13%)
$9,920: oil (93%)
22. Texas City, TX
$8,629 $1,423: inorganic chemicals (75%)
$7,206: oil (99%)
24. Port Arthur, TX
$7,219 $724: oil (63%), chemicals (27%)
$6,495: oil (94%)
$1,434: chemicals (62%), rubber/plastic
25. Freeport, TX
$7,161 (24%)
$5,727 oil (94%)
$5,419: oil (68%), iron/steel
27. Baton Rouge, LA
$6,693 $1,274: chemicals (76%), oil (19%)
(18%)
31. Lake Charles, LA
$6,055 $806: oil (40%), chemicals (34%)
$5,249: oil (98%)
$1,694: wood pulp (24%), oil (23%),
$3,431: oil (56%), base metals
*33. Mobile, AL
$5,125 chemicals (14%)
(18%)
$764: poultry (29%), machinery (26%),
*35. Pascagoula, MS
$4,642 oil (22%)
$3,878: oil (94%)
$1,622: textiles/apparel (60%), wood pulp $2,355: textiles & apparel
*37. Gulfport, MS
$3,977 (11%), machinery (8%), poultry (8%)
(78%)
$703: cereals (49%), machinery (14%),
$2,586: oil (67%), machinery
**40. Galveston, TX
$3,289 oil (11%)
(15%)
$1,462: inorganic chemicals
(35%), oil (15%); vehicles
41. Tampa FL
$3,197 $1,735: fertilizer (85%)
(15%)
Total: Gulf Ports
$197,769 $61,947
$135,822
*Ports closed or partly closed by Hurricane Katrina; ** Ports closed or partly closed by Hurricane Rita. Source of data:
CRS calculations on U.S. Customs data manipulated by the U.S. Maritime Administration.

Figure 6. Sixteen Key Ports in the U.S. Gulf of Mexico

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