12 May 2011

Though the South Florida economy remains weakened by the recession, international trade, one of the region’s top economic drivers, is stronger than ever.

That was the message delivered by Tony Ojeda, executive director of Miami-Dade’s Office of Economic Development and International Trade. Ojeda kicked off WorldCity’s Trade Connections meeting on May 10, held in partnership with the Doral Business Council and its Signature Breakfast Series.

Though unemployment in Greater Miami remains above the national average, Ojeda noted that 2010 was a record year for total trade as $95.3 billion in imorts and exports moved through the Miami Customs district. That’s a 20.6 percent increase over 2009.

“We all know Miami as a tourist destination. But another important aspect is international trade, he said. “Many people in Miami-Dade County don’t even realize what international trade is doing for the community.”

And international trade is doing quite a bit, according to the 2011 Miami Trade Numbers which WorldCity released at the meeting.

WorldCity President Ken Roberts, who also moderated the panel discussion, noted that the Miami Customs district was No. 13 going into recession, but has moved up to No. 11.

“That’s primarily due to one reason: Latin America doesn’t have a mortgage market,” Roberts said, referring to problems with the U.S. economy that were tied to excessive lending. Latin America’s appetite for U.S. exports, he said, has remained strong.

Trade with Brazil, once again Miami’s top partner, rose 20 percent to $13.39 billion. Trade with No. 3 partner Switzerland shot up 46.7 percent to $5.41 billion on the strength of a 56 percent rise of scrap of precious metal exports.

And, in the wake of Haiti’s earthquake in January 2010, total trade with the recovering country jumped 35.4 percent to $1.13 billion. The sharp rise in aid exports bumped Haiti up to the No. 24 slot, Roberts noted.

The event was held at the InterContinental Hotel in Doral. With its many warehouses, logistics companies and proximity to Miami International Airport, Doral was a perfect place to discuss international trade, Roberts told the audience.

“This is ground zero. This is where it happens,” he said.

 

Joining the panel discussion were Jim Fendell, founder, president and CEO of AeroPost International Services; Richard Armellini, president of Armellini Express Lines West Coast Division, and; Chris Meiser, VP of Operations for Avnet Technology Solutions, Latin America and Caribbean.

 

Armellini’s company is the largest floral carrier in the United States specializing in temperature-controlled shipments and a longtime fixture at Miami International Airport, where about 80 percent of all fresh-cut flowers enter the United States.

Armellini said that South Florida’s strength in international business rests on its unique culture and ties to Latin America. That is why the region will remain strong as other cities look to cut into growing Latin American markets. He said he has been contacted by a host of cities interested in the flower market, from Pittsburgh to Dallas.

“You can fly an airplane anywhere. It’s the culture you can’t pick up and move,” he said.

Armellini imports flowers from Colombia and Ecuador, moving an average of 100 truckloads each week in 37 states.

 

Miami is also the ideal place for Avnet to run its Latin American technology parts distribution operation, Meiser said.

 

“The majority of our business comes from Miami because this is where the freight forwarders are,” he explained. “That triangle between the seaport, the airport and the freight forwarders makes this key for trade with Latin America.”

Avnet’s Miami office oversees $1 billion in annual business, Meiser said.

Fendell said his company, AeroPost, gets 40-44 percent of its business from orders placed on Amazon.com. Essentially, it offers online shoppers in Latin America a less expensive way to get packages – with high-tech products like computers, cell phones and laptops a common purchase – delivered to them, since “door-to-door” using overnight couriers can be expensive.

Business has been so good that AeroPost is planning to move from its current 38,000-square-foot Doral warehouse to a warehouse about eight times larger in the Blue Lagoon area, just south of Miami International Airport, Fendell told the audience. It is also taking on a venture partner to help capitalize the company for rapid growth.

Though Miami’s international business is going strong, the panelists said that the region can’t afford to take this for granted.

Ojeda, of the county’s international trade organizations OEDIT, said it would help if the Unites States were to pass long-delayed free trade agreements with Colombia and Panama, Miami’s No. 2 and No. 16 trading partners, respectively.  The community needs to make sure that the Port of Miami tunnel and dredging projects get done in order to accommodate the expected spike in cargo when the Panama Canal expansion brings super-sized ships in 2014, he said.

 

Significant railroad connectivity to the seaport – currently being forwarded by Florida East Coast Railway – would also keep Miami strong, Armellini noted.

 

“It’s going to help tremendously,” he said.

Meiser, Fendell and Roberts all agreed that bolstering infrastructure is crucial to reducing congestion and lubricating the gears of international trade.

Still, “the view from 30,000 feet” looks great, Roberts said. While other regions import more than they export, that’s not the case in Miami, he noted. Both imports and exports grew last year – 23.5 percent and 18.9 percent, respectively.

In 2011, Roberts predicted that Miami’s international trade will exceed the $100 billion mark for the first time. After that, the sky’s the limit.

WorldCity’s Trade Connections quarterly event series is sponsored by Seaboard Marine, American Airlines Cargo, Flagler Development, Miami International Airport and the Port of Miami. The next Trade Connections event is Sept. 16.

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