The Promise of the Panama Canal
According to Francisco J. Miguez, Executive Vice President for Finance and Administration at the Panama Canal Authority, the Panama Canal locks –now an estimated 96 percent complete— are expected to be ready early in the second half of 2016.
The Impact to Florida: Will There be a Shift?
The impact of the Panama Canal expansion project on U.S. East Coast and West Coast ports is still to be determined, as there are many factors that impact international trade flows.
According to Miguez, container volume from Northeast Asia to the U.S. East Coast now is practically equally divided between the Panama Canal, Suez Canal and intermodal rail.
U.S. Commercial decisions generate two-thirds of the traffic which impact cargo routing such as transit times and costs. The transit time from North Asia to the East Coast is slightly shorter via the Panama Canal than through the Suez — so some of the cargo that comes from that area is expected to shift from the Suez to the Panama Canal.
Intermodal rail is also an important factor. If western railways seek to aggressively retain market share, they have the ability to reduce costs to retain business and remain competitive. What is also yet to be seen are the costs to transit the Panama Canal as well as how the Suez Canal adjusts tolls.
Reliability continues to remain an important factor. The labor issues at West Coast ports remain fresh in the minds of many retailers and the reputation of West Coast ports took a serious hit.
What This Means For Florida:
There are still too many factors to say with any certainty what will happen. The Florida Chamber Foundation’s first Trade and Logistics study appropriately issued a call to action: the Panama Canal is a once-in-a-lifetime opportunity to capture West Coast bound cargo. Florida has certainly headed the call and has made unprecedented investments to be ready. The multiple construction delays for the Panama Canal have favored our state, as has the West Coast port shut down.
Florida ports are in the race and our transportation networks stand ready to prove that we have capacity and are competitive and reliable. It will be a gradual shift, but over time, we stand to win.
Florida’s Agriculture Industry Benefits from International Trade
FOR IMMEDIATE RELEASE
CONTACT: Edie Ousley, 850-521-1231 or 850-251-6261
TALLAHASSEE, FL. (May 12, 2015) – Nine of the top 10 markets for Florida agricultural exports are located in the Americas, according to research from the Florida Chamber’s Global Florida Program.
“The Americas present a large portion of Florida’s international trade opportunity, especially for Florida’s agriculture industry,” said Alice Ancona, Director of Global Outreach for the Florida Chamber of Commerce. “Canada continues to be Florida’s number one destination for Florida agriculture products, while Brazil continues to rank as Florida’s top trading partner and export destination. Florida has a once in a lifetime opportunity to take advantage of changing trade routes and become the global hub for international trade.”
Florida ranks eighth in the United States for “Fresh from Florida” exports of agricultural commodities, valued at an all-time record of $4.2 billion, supporting more than 109,000 jobs and representing an economic value of more than $13 billion.
Canada also tops the list as the top international country for visitors and dollars spent in Florida- with more than $4 billion spent. Growing trade relationships with countries like Chile, Colombia, Venezuela, Argentina and Peru work to create a competitive environment for Florida’s exporters – 95 percent of which are small-to-mid-sized businesses— to grow and thrive. In fact, the Florida Chamber recently led a Florida delegation along with Lieutenant Governor Carlos Lopez-Cantera, to Peru to sign a Memorandum of Understanding (MOU) to help promote trade and investment opportunities between Peru and the United States.
The impact of international trade to Florida’s economy cannot be denied. International business and foreign direct investment accounts for approximately 17 percent of Florida’s economic activity, and directly supports more than 1 million Florida jobs. Florida is the seventh largest exporter of state-origin products with Florida-origin exports totaling more than $58.6 billion and exports from Florida supporting 275,221 U.S. jobs in 2013.
“International trade is critical not only for Florida’s overall economy, but for individual families and communities across the state, as well as visiting consumers,” said Doug Wheeler, President and CEO, Florida Ports Council. “Increasing trade creates jobs and brings a better quality of life to our state.”
The Florida Chamber’s Global Florida Program’s mission is to educate and promote business opportunities, collaborate and advance policy initiatives in each of the four major geographic regions: Americas, Asia Pacific, Europe and Middle East/Africa. Agriculture Commissioner Adam Putnam recently sponsored the Florida World Trade Month resolution, which was signed by Governor Scott, Attorney General Pam Bondi and CFO Jeff Atwater.
The Florida Chamber of Commerce is the voice of business and the state’s largest federation of employers, chambers of commerce and associations, aggressively representing small and large businesses from every industry and every region. The Florida Chamber works within all branches of government to affect those changes set forth in the annual Florida Business Agenda, and which are seen as critical to secure Florida’s future. The Florida Chamber works closely with its Political Operations and the Florida Chamber Foundation. Visit www.FloridaChamber.com for more information.
Did You Know Florida is the 7th Largest Exporter of State-Origin Products?
The impact Florida’s international relationships have on our economy cannot be denied. As the seventh largest exporter of state-origin products, Florida-origin exports total more than $58.6 billion and exports from Florida supported 275,221 U.S. jobs in 2013.
“Florida has come a long way in building international economic development efforts, but our work is far from over,” said Doug Davidson, Market Executive of Global Commercial Banking at Bank of America Merrill Lynch. “At Bank of America, we support the Florida Chamber Foundation’s research in trade and logistics because we know that Florida’s future lies in being globally competitive.”
International business and foreign direct investment account for approximately 17 percent of Florida’s economic activity, and directly support more than 1 million Florida jobs. But as our economy grows, Florida must also continue to diversify export destinations- one of the strategies recommended in the Florida Chamber Foundation’s Florida Trade and Logistics Study 2.0.
From the Americas and beyond, Florida is quickly becoming the hub for global trade, especially in emerging markets such as Africa, Latin America and the Middle East- where growth projections remain higher than in developed markets and where purchasing power continues to increase.
The U.S. currently has five free trade agreements in the Middle East region. U.S. free trade agreements have helped expand Florida’s export opportunities. In fact, more than one-third of Florida exports go to countries that have trade agreements with the United States.
When oil exports are excluded, Florida is the number one exporter to Central and South America, with Florida exporting more than $30 billion in goods to that region in 2014.
While Florida’s top trade partners are Brazil and Canada, many emerging countries from several regions make Florida’s top 10 importers list, such as Peru (the site of a recent Enterprise Florida economic development mission trip that was attended by Alice Ancona, Director of Global Outreach for the Florida Chamber of Commerce), United Arab Emirates and Germany.
As global trade and economic activity expand over the coming decades, international commerce will continue to play a role as an essential driver of Florida’s future. Diversifying Florida’s export destinations is a strategic step in accomplishing this and is outlined in the Florida Chamber Foundation’s Florida Trade and Logistics Study 2.0.
Florida can create a stronger global economy and jobs for future generations through increased investment in ports and infrastructure projects and expanded export manufacturing and value-added services.
The Florida Chamber is committed to connecting Florida’s business community to global opportunities and leveraging resources and investments to maintain and expand Florida’s position as an international trade leader. The International Business Council is launching a new program to support Florida businesses as they explore opportunities to diversify into new export markets. GLOBAL FLORIDA will focus on connecting them to resources, policy initiatives and business intelligence on market trends for four of the major geographic regions of the world: Americas, Asia Pacific, Europe and Middle East/Africa.
Together we can help Florida become the number one hub for global trade. Join the state’s international business community at the Florida Chamber’s International Days – a two-day event where the top international trade and industry experts will convene to discuss topics such as export diversification.
Share Your Story:
Can’t make International Days? Tell us your story and why international relationships matter to Florida by contacting Alice Ancona at email@example.com.
About the Florida Scorecard:
The Florida Scorecard, located at www.TheFloridaScorecard.com, presents metrics across Florida’s economy. Each month, the Florida Chamber Foundation produces a Scorecard Stat that takes an in-depth look at one aspect of Florida’s economy. If you would like additional information on the Weekly Scorecard Stat or on the Florida Scorecard, please contact Dr. Jerry Parrish with the Florida Chamber Foundation at 850.521.1283.