The World Trade Center Miami welcomes you to SeaCargo Americas News, offering you updates from the industry and useful information on the fourth year of the SeaCargo Americas Conference and Exhibition. 

SEACARGO AMERICAS NEWSLETTER
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NEWS IN THE AMERICAS

• Tropical Announces General Rate Increase
• Port of Tampa to Expand Juice Handling
• Seaboard: Port Business as Usual in Honduras
• Cuban Leaders Considering Capitalism for Small Businesses
• Recession Pushes Caribbean Toward IMF
• Bulkhead Expansion Starting Soon at Port of Miami
• Industrial Price Index Positive for First Time in 11 months
• CMA CGM, Hapag Lloyd and Hamburg-Süd Launch South America Service
• MSC Shows Growth as Container Rivals Slip
• Second Port of New Orleans Terminal Reduces Business Hours
• Jamaica Considering Legalizing Casino Gambling

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SAVE THE DATE……November 4-6, 2009

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The Port of Miami will again host SeaCargo Americas. The port, under the leadership of Bill Johnson, has supported the event since its inception. Johnson believes that the event will increase two-way cargo growth for the Americas by providing a world class forum on international maritime and logistics issues and showcasing the latest maritime and security products, e commerce solutions, technologies and services.

NEWS IN THE AMERICAS

Tropical Announces General Rate Increase
Tropical Shipping, following resignation from its long-standing Caribbean rate agreement coalition, has announced general rate increases for shipments between Puerto Rico or the U.S. Virgin Islands and the Eastern Caribbean, Guyana, the British Virgin Islands or the Dominican Republic.

According to the company’s July 23 statement, “ In order to continue to provide the highest quality, on-time shipping services, effective August 23, 2009, Tropical Shipping will implement a General Rate Increase (GRI) for shipments between Puerto Rico or the U.S. Virgin Islands (St. Thomas, St. Croix or St. John) and Anguilla, Antigua, Barbados, Caucedo, Dominica, Grenada, Guyana, Nevis, Puerto Plata, St. Kitts, St. Lucia, St. Maarten, St. Vincent, Trinidad, Tortola and Virgin Gorda.

The General Rate Increase, effective August 23, 2009 will be as follows:

Equipment Size General Rate Increase

• 20’ Equipment $50.00 40’
• Equipment $100.00 Greater than 40’
• Equipment $113.00
• Vehicles not exceeding 700 CFT $30.00
• Vehicles exceeding 700 CFT $2.35
• Breakbulk; W/M (ST/FT) $2.35
• CWT for LCL –100 lbs $0.12
• CFT for LCL - 1 cft $0.06
• Barrel - Each $0.09
• Pallet - Each $4.55

Port of Tampa to Expand Juice Handling
A subsidiary of the world's largest orange grower and processor plans to build eight 1 million gallon storage tanks at a new facility on the Port of Tampa to export orange juice worldwide from Florida.

The Tampa Port Authority approved a lease option with Cutrale Citrus Juices USA of Auburndale that is expected to lead to a long-term lease of 2.7 acres of land along Berth 205 in Hookers Point.

Construction of the orange juice storage tanks is expected to be completed within two years, Thompson said. Ten ships a year are expected to serve the facility. The facility could move 300,000 tons of juice per year, three times the annual tonnage guarantee with the port. Other operations at the port handled 77,731 tons of citrus bulk concentrate in 2008. The facility will require Cutrale to make a $25 million to $30 million investment, Thompson said.

The port will spend $1.8 million on dock improvements; $72,000 for port roadway improvements to ensure that Tampa Juice, a neighbor to the Cutrale site, will not be affected by their competitor's new truck traffic; and an undetermined amount to dredge the shipping area at the Cutrale facility to permit heavier ships. http://www2.tbo.com/content/2009/jul/21/211332/port-tampa-oks-building-8-orange-juice-storage-tan/

Seaboard: Port Business as Usual in Honduras
Seaboard Lines, the largest ocean cargo carrier sailing from the port of Miami reports that all of its facilities and offices in Honduras are fully functioning and operating normally despite the ouster of President Zelaya.

The line reports, “All vessels, including those of Seaboard and other shipping lines, have been timely discharged and loaded at Puerto Cortes, the main port in Honduras. All of Seaboard's vessels remain on their normal rotations and schedules. All imported cargo that has arrived has been normally cleared by Honduran Customs and has been timely delivered to customers. Trucking operations are normal. Although there have been a few scattered disturbances in certain cities, all major roads are open.

Seaboard’s offices in Tegucigalpa and San Pedro Sula have been fully staffed all month and functioning as usual. Likewise, all container depots and terminals have been working without any interruptions. Cargo bookings and volumes are at normal levels. The line says, “We have loaded and discharged over 2,000 containers without any delays since Zelaya's removal.” http://www.seaboardmarine.com/sml/ViewNews.aspx?NewsID=197

Cuban Leaders Considering Capitalism for Small Businesses
According to the Reuters correspondent in Havana, cash-strapped Cuba is being urged by key government leaders to take production out of the hands of the Communist system and place it in the hands of producers, as President Raul Castro has done with agriculture.

Ariel Terrero, Cuba’s to economic guru during his regular Tuesday appearance on state-run television, did not yet call for private management, but suggested that sectors such as food services and retail could perform better if they were run in a new way.

“In the Cuban economy, there’s a need to look for formulas more dynamic, more intelligent, of understanding property, of running a business, of running a cafeteria,” he said. About 90 percent of communist-led Cuba’s economy is under state control.

“The leasing of state lands, which in the end is the placing of state property in the hands of producers, could be applied in other sectors, for example food services, retail trade, and other areas where really it is impossible, given the diversity and breadth, for the state to administer directly,” he said. Terrero, who regularly comments on economic affairs in Cuba’s tightly controlled state media, said big, concentrated operations such as nickel plants, sugar mills, hotels and the power grid were not the same as an appliance repair shop or a cafeteria.

His comments follow a recent government report seen by Reuters that suggested similar changes. The report by the Economy and Planning Ministry blamed hurricanes, the U.S. embargo and world financial crisis for a cash shortage that has forced cutbacks in imports, budgets and energy consumption. But it also said long-standing structural problems were to blame. “State-run socialist companies must be efficient and for that what they need for their optimal performance must be guaranteed,” the report said. http://www.reuters.com/article/globalNews/idUSTRE56R6BA20090728?sp=true

Recession Pushes Caribbean Toward IMF
Caribbean countries dependent on tourism for jobs, foreign exchange and as the main driver of economic activity are being bombarded by the sharp downturn in the global travel industry. Consequently, several of these countries have had to knock at the doors of multilateral lending agencies seeking financial support, while those that are dependencies are being shored up by their 'mother' countries.

Already, St Vincent & The Grenadines, St Lucia and Dominica have sought support from the International Monetary Fund (IMF), and Grenada has had its existing arrangement augmented to deal with the effects of the crisis. St Kitts is expected to do the same. To date, Antigua & Barbuda, the Bahamas and Barbados have not gone to the IMF, although their external accounts must be hurting from the slump in tourism. For the next two to three years, these regional economies will remain shaky as recovery of global economic activity, to which the fortunes of the travel industry are tied, is expected to proceed at a slow pace.

Under the pressure of the worst economic recession in 65 years, both business and leisure travel are experiencing huge declines. In the first five months of this year, total air passenger movements in the six regions of the world airport system dropped by a whopping 7.5 per cent. The poor financial returns of major airlines, some of which like British Airways have been perennially profitable, are clear evidence of the depth of the fall-off in air travel.

The North American and European regions that account for over 65 per cent of airline traffic showed the largest slippages of 9.4 per cent and 10 per cent, respectively, in total passenger movement. In both regions, domestic and international passenger movements fell due in large measure to the slide in business travel. In the case of the European region, internal air travel declined by as much as 13 per cent; and in North America, which is by far the leader in domestic air travel, the decline was 9.6 per cent.

The gravity of the situation is demonstrated by the extent of the downturn in tourist arrivals for the peak winter months. Apart from Cancun, Cuba and Jamaica, all other destinations recorded declines, and except for the Dominican Republic, these were steep. For example, Antigua & Barbuda, the Cayman Islands, St Vincent & The Grenadines and St Lucia recorded double-digit or high, single-digit falls in arrivals. The Bahamas is likely to have suffered a similar fate, although it has not been releasing its tourism data.

The overwhelming importance of the US market and the high dependence of most Caribbean destinations on that market means, however, that growth in tourist arrivals from Canada cannot offset the fall in American visitors. Another important negative impact of the global recession and the problems in the US economy in particular is the virtual halt in investment activity in the regional tourism sector.

The fall-off in foreign exchange inflows from the resulting reduced level of foreign direct investment activity is likely to be as damaging to the balance of payments of some regional economies as the downturn in tourist arrivals, reinforcing the pressure to seek IMF support. http://www.jamaica-gleaner.com/gleaner/20090726/cleisure/cleisure5.html

Bulkhead Expansion Starting Soon at Port of Miami
Miami-Dade County commissioners recently approved a $6.8 million contract to construct 758 feet of new bulkhead to connect two existing sections of bulkhead adjacent to the Seaboard Marine terminal at the Port of Miami. Construction should commence in September with completion in 2010.

The project is one of many infrastructure improvements that Seaboard Marine and the Port of Miami are undertaking as part of a 30) year agreement reached between the parties last year. Many of those projects are already underway. Carlos Arocha, Seaboard Marine VP-Operations, said, “The new bulkhead extension will not only significantly increase berthing capacity for Seaboard Marine vessels, it will also improve our productivity by allowing for better cargo alignment and organization within the eastern portion of our terminal. The result will be improved efficiencies and quicker turnaround for cargo containers and the truckers who deliver them. We are excited that construction will start soon.” http://www.seaboardmarine.com/sml/ViewNews.aspx?NewsID=199

Industrial Price Index Positive for First Time in 11 months
The Journal of Commerce-Economic Cycle Research Institute index of global industrial prices moved into positive territory for the first time in almost a year in its most recent week, signaling an improvement in global demand for the raw materials that go into industrial production, according to the Journal of Commerce. The Industrial Price Index (IPI), based on the daily prices of raw materials used in industrial production, ended the week of July 24 more than 3.3 percentage points higher than the previous week, reaching 86.1637, the highest point for the IPI has since Oct. 24, 2008.

The gain marked a 4.54 percent improvement over the index's average during the previous 52 weeks, the first time the IPI has grown since the first week of August 8, 2008, shortly before the onset of a steep decline in world financial markets. http://www.qualitymag.com/CDA/Articles/Industry_Headlines/BNP_GUID_9-5-2006_A_10000000000000631874

CMA CGM, Hapag Lloyd and Hamburg-Süd Launch South America Service
CMA CGM, Hapag Lloyd and Hamburg Süd have announced the launch of a new direct service on the route between the East Coast of South America and North Europe. As of August 6th 2009, the lines will provide a joint weekly service of 2 loops, replacing their respective SAFRAN / SAEC services and featuring 3 major changes:

• A rationalization of their capacity on this trade to better match the market evolution.
• An improved frequency with more vessels deployed as well as more competitive transit times.
• An enlarged port coverage with the introduction of two new port calls at Salvador de Bahia and Suape.

The rotation will be as follows:

Sling 1: Rotterdam – Tilbury – Hamburg – Antwerp – Le Havre – Santos – Buenos Aires – Montevideo – Rio Grande – Santos – Suape – Rotterdam

Sling 2: Rotterdam – Hamburg – Antwerp – Le Havre – Sepetiba – Navegantes – Paranagua – Santos – Sepetiba/Rio de Janeiro – Salvador – Tangier – Rotterdam

Sling 1 will deploy 6 vessels of 5.900 TEU capacity (operated by Hamburg Süd) and Sling 2 will deploy 6 vessels of 2.800 TEU (4 operated by CMA CGM and its partner, 2 by Hapag-Lloyd).

"By undertaking this rationalization, CMA CGM and its partners are committed to keep delivering the best service along with an adapted capacity while improving cost and air emissions efficiency thanks to the eco-speed policy", explains Jean-Yves Duval, Deputy Vice-President Latin America Lines, CMA CGM Group. http://www.transportintelligence.com/news/cma-cgm-hapag-lloyd-and-hamburg-sd-south-america-service/5421/

MSC Shows Growth as Container Rivals Slip
U.S. containerized imports and exports plunged 21 percent in the first quarter of 2009 while No. 2 carrier, Mediterranean Shipping Co., resisted the trend with an 8.9 percent increase in import volume.

The first-quarter numbers reported in the Top 40 Container Line rankings published in The Journal of Commerce July 20 edition were the first to show the full impact of the global economic crisis.

Mediterranean Shipping, which has expanded with the addition of large new ships, posted a remarkable 8.9 percent jump in imports, making the Geneva-based carrier one of only six of the JOC Top 40 carriers with an increase in import volume. Thirty-eight of the carriers on the JOC Top 40 lists recorded declines in exports, and 18 of the 20 largest lines on the list posted double-digit drops in export volume.

Denmark-based Maersk Line remained the largest carrier in U.S. containerized cargo, with first-quarter market shares of 11.8 percent in imports and 11.1 percent in exports. MSC was second in imports, with an 8.5 percent share, and exports, with 11 percent. http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/07-17-2009/0005061881&EDATE=

Second Port of New Orleans Terminal Reduces Business Hours
Ports America, one of two companies that run container terminals at the Port of New Orleans has slashed its operating hours to deal with the recession. The company shaved five hours off of its 7 a.m. to 5 p.m. schedule on Tuesdays and Fridays, closing at noon on those days.

The decision, announced earlier this month, comes on the heels of a similar move by New Orleans Terminal LLC, the company that operates the other half of the Napoleon Avenue Container Terminal. That firm cut two hours from its daily schedule, opening at 8 a.m. instead of 7 a.m. and closing for lunch between noon and 1 p.m.

With consumers spending less, companies are shipping fewer products. The Port of New Orleans had its worst year since 1985 last year, moving just 6 million tons of general cargo. Containers -- giant metal boxes used to move everything from clothing to chemicals -- were down 25 percent during the first quarter of this year. . http://www.nola.com/business/index.ssf/2009/07/truckers_endure_frustrating_de.html

Jamaica Considering Legalizing Casino Gambling
The Jamaican Parliament is considering legalizing casinos on the island. Two companies have shown interest in bringing casino gambling to Jamaica, and the government is looking for ways to help amidst the economic crisis facing the world.

"Casinos in Jamaica makes sense," said Harry Frenzely, "It already is a tourist destination, and if they can compete with the Bahamas for the gambling dollar, their tourism industry would grow even further." The extent of casino gambling these days in Jamaica is a couple of hundred slot machines that are being played in hotels. That is not enough, according to gambling proponents, to make a difference for the country.

Prime Minister Bruce Golding claims the companies interested are eyeing Montego Bay and Trelawny. He says that the starting point for any casino bids would be a 2,000-room hotel and a $1.5 billion minimum investment. Many US casino companies have already started branching out around the world, though most have been focused on Macau, Malaysia, and Singapore. The Jamaican market could become a desired location if the opportunity were to open up. http://www.casinogamblingweb.com/gambling-news/gambling-law/jamaica_considering_legalizing_casino_gambling_51465.html

SPONSORSHIP OPPORTUNITIES

SeaCargo Americas provides an outstanding opportunity for your company to showcase its products and services to a targeted group of potential new customers. Sponsorships range from banners ($1,000), coffee breaks ($3,000), luncheons and receptions ($5,000- $10,000).To receive further information, please call Charlotte Gallogly at 305-871-7910 or email: info@worldtrade.org. Visit: www.seacargoamericas.com

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