Shallow-bay ports along the Gulf of Mexico, such as Galveston Bay, Texas (GBT), are vital economic and transportation hubs, yet they face significant challenges due to sediment dynamics induced by vessel activity. This study investigates the hydrodynamic effects of vessel wakes and propeller wash on sediment mobilization in shallow-bay systems, focusing on the Houston Ship Channel (HSC). Through extensive field campaigns, hydrodynamic parameters and suspended sediment concentrations (SSC) were measured using acoustic and optical instruments deployed both on the seabed and on vessels. Wake-induced sediment suspension was observed several hundred meters from the HSC, with initial drawdown currents exceeding critical shear stress for sediment mobilization and secondary wake oscillations redistributing sediment throughout the water column. Simultaneously, propeller wash from deep-draft vessels generated sediment plumes inside the ship channel with SSC values up to three orders of magnitude above background levels. These plumes extended vertically through the water column and horizontally along the channel, significantly contributing to sediment redistribution and high turbidity. The findings emphasize the critical role of vessel-induced sediment dynamics in shaping sedimentation patterns, necessitating their inclusion in channel maintenance considerations and siltation mitigation strategies. This research provides a foundation for improving sediment management in high-traffic shallow-bay systems, supporting both environmental and operational sustainability.