WorldCity Business Magazine

1Q Miami trade: imports- the slow lane

by Claudio Mendonça

Gasoline and textiles continue to dominate but import values rose only slightly in first quarter.

Gasoline and clothing from Central America and China continue to top South Florida’s import roster, with non-crude oil soaring and apparel slightly declining in the first quarter of 2006 compared to one year ago.

Total rose just 4 percent, ending the quarter at $7.8 billion compared to $7.5 billion for the first three months of 2005. The results came during a quarter that saw China slide past Brazil to become South Florida’s top source of imports.

South Florida imports were fueled by gasoline and other refined petroleum products, predominantly entering through Fort Lauderdale’s Port Everglades. Refined oil accounted for 12 percent of total imports or $912 million. That was a colossal 70 percent jump from the same period last year.

Imports from China increased 11 percent to close the quarter at $779 million, well above Brazil’s $492 million. Brazil remains South Florida top trade partner overall, as measured by the combined value of imports and exports. But first quarter 2006 figures put China in the top spot among import partners.

During the 12 months ending Dec. 31, 2005, the Miami Customs District imported $3.1 billion in goods from China, a dramatic 31 percent jump compared with the year earlier. Brazil hung onto its lead but just barely as Miami’s imports from the South American fell 11 percent to end 2005 at $3.4 billion.

In the first quarter of this year, Venezuela continued to entrench itself on the trade partners list, holding fast to the No. 2 position it grabbed in 2006 pushing out the Dominican Republic. Oil imports from Venezuela accounted for nearly $225 million, or 25 percent of South Florida’s energy imports for the first three months of the year.

The Netherlands also played a role in providing gasoline for area automobiles, pickup trucks and sport utility vehicles. Nearly $152 million in gasoline imports arrived from the Netherlands, which is not an oil producer but serves as an important transshipment point for cargo including petroleum leaving Europe.

Energy inflows from the United Kingdom exceeded $99 million while those from Aruba were nearly $73 million. Aruba has a 280,000-barrel-a-day refinery. Some 40 percent of its production is U.S.-bound.

Although energy products carried the biggest price tag among South Florida’s imports, apparel, fruits and vegetables arrived in the biggest volumes, according to Carlos Buqueras, Port Everglades’ director of trade development. Imports of fruits and vegetables through South Florida ports reached $150 million in the quarter, up 15 percent from the same period a year earlier.

Garments were the second-most valuable import through the Miami Customs district. Arriving mostly from China and Central America, imports of T-shirts, tank-tops and underwear remained nearly unchanged from a year ago, dropping slightly to just under $296 million, compared with $297 million a year earlier.

South Florida’s imports of sweaters and pullovers, meanwhile, closed the first quarter at $260 million, a drop of 5.6 percent compared to the first three months of 2005. Imports of men’s suits fell 32 percent to $214 million.

Total container tonnage at the Fort Lauderdale port grew 20.6 percent to 3.4 billion short tons in the first quarter 2006. Imports were 3 billion short tons, versus 2.6 billion in the first quarter of 2005. Exports reached 460.5 million short tons, compared to nearly 353 million short tons in 2005.

In the Port of Miami, first quarter imports hit early 1.06 billion short tons against 1.05 tons in 2005. Exports, however, fell 4.8 percent to end the quarter at $591 million.

Buqueras said Port Everglades’ capacity to handle cargo has increased over the past year. Florida International Terminals moved into to a 36-acre terminal previously owned by South Stevedoring Inc., which filed for Chapter 7 bankruptcy in 2003. Mediterranean Shipping Co. (MSC) has also moved into a new 39.2-acre facility.

Imports of transmission devices for cellular phones posted growth, gaining nearly 16 percent to reach $242.6 million. But the aircraft plunged by 63 percent in the first quarter to just under $193 million. By contrast, imports of regional jets parts soared 29 percent to nearly $84 million.

Imports of fresh-cut flowers from Colombia continue to flourish during the first three months of the year, which include Valentine’s Day. They reached $186 million, up from $180 million in the first quarter of 2005. Computer imports also surged, gaining 28 percent to total nearly $178 million.