The results of Hurricane/Tropical Storm Harvey on the South Texas/Houston area have reached unimaginable levels of damage. The ramifications from this once-in-a-century event cannot be determined yet. The storm system is moving eastward to Louisiana and while Houston area rainfall amounts will subside, the precipitation is expected to continue into Thursday, August 31.
Images of the weather conditions in South Texas, while heartbreaking, don’t begin to convey the difficulties facing the effected communities. Highways are closed, railroads are at a standstill, thousands of people either can’t get to their homes or are stranded where they live. Many are dealing with total isolation issues with so many transportation resources literally underwater. It is much too early to determine when normal life and living conditions will return in the area.
The petrochemical industry is dealing with multiple plant closures, force majeure declarations, allocations, and horrific transportation issues. Road closures mean truck movement is at a standstill. Railroads have put embargoes on Houston railcars and have, in many cases, suspended operations. More importantly, the dislocation to people and their ability to return to respective work environments has been severely crippled.
At this time, there is no way to determine the impact and timing of the force majeure declarations (see attached Chevron and Total letters), plant closings or the overall resin supply situation as the closed plants have not reopened, office and plant personnel can’t get to work, and the logistics situation is going to get worse before it gets better. It could be weeks before assessments are done and allocation plans determined.
Shipment delays out of South Texas, no matter the transportation mode, are a certainty. It is way too early to even give an estimate when “normalcy” will return. Meanwhile, your Trademark representative and all our associates are working diligently to see to it service levels remain at a high level of proficiency. Please keep in mind there are people in the Houston area dealing with life issues that could take a priority over business activities.