Watco Sees Slowdown in Outbound Steel Shipments

Sources say some importers have had to find alternatives for material that has already hit the docks. But that’s not to imply that Watco is completely booked.

“We have seen the outbound volumes of steel cargos slow, which has resulted in less available space in our warehouses throughout our network. However, given the size of our network, we can typically accommodate most cargos,” said Len Crescenzo, vice president of sales at Watco.

Watco Texas Terminals is part of Watco Companies LLC, a Pittsburg, Kans.-based transportation company.

With a significant presence in steel coil storage in the Houston area, many importers rely on availability at Watco’s facilities. However, now that demand is softening, customers may lack room in their own storage space – thus forcing them to depend more heavily on third-party locations.

Previously, a last-minute call may have been enough to find a temporary home for material, but now it appears that more planning will be necessary.

“We have had instances where we’ve committed space to a customer cargo which caused us to decline a spot cargo. We are constantly evaluating and managing our storage space to compete for as many cargos as possible,” Crescenzo said.

By Becca Moczygemba, Becca@SteelMarketUpdate.com