Business
How is the coronavirus affecting South Florida ports? For now, preparing for the worst
In the past decade, China has become Miami’s top trading partner, with some $5 billion passing between PortMiami and the East Asian giant. So with Chinese manufacturing ground to a halt in the past month, what impact will it have on the local economy?
It may be too early to tell, experts say.
PortMiami data show it processes goods to and from China equivalent to about 160,000 cargo containers. That is more twice as many as the port’s next largest country partner, Honduras.
In January, tonnage was down 8% year on year, according to Miami-Dade data obtained by the Miami Herald Wednesday. The 829,000 tons registered was the third-lowest tallied in the past 12 months.
At the same time, cruise passenger data for January climbed more than 3%. February data will not be available for several more weeks.
The Miami Herald has previously noted that shipments expected by Miami retailers from China are being delayed, and that shortages of certain items may start kicking in during the next quarter.
Keith Koenig, CEO of City Furniture, said shipments from China last week were at 10% of normal volume. This week, as factories come back to life, he said, he expects 50% of expected shipments. He said he has enough inventory to cushion his business. His greatest fear, instead, is if the outbreak in the U.S. expands and shoppers stop showing up to his stores.
But for now, “we’re not in panic mode,” he said.
The risk of the virus being transferred through goods shipped from China is negligible, according to experts, since the virus’ lifespan on dry surfaces is quite short.
Still, PortMiami says all ships and terminals are being thoroughly sanitized as a precautionary measure by both the cruise lines and port staff.
“At PortMiami it is business as usual,” the agency said.
In a statement, Doug Wheeler, President & CEO of the Florida Ports Council said there is likely to be some reduction in Asian products—but that the situation is already improving.
“We have already seen rebounds in volumes and ship calls at Chinese ports, therefore we are not anticipating a dramatic reduction in Florida’s overall annual tonnage or cargo value,” he said.
A spokesman for Miami International Airport said shipments from China account for a small fraction of total freight processed there.
Meanwhile, Port Everglades in Fort Lauderdale has already been dealing with reduced flow of goods as it undergoes a $400 million capital improvement program. But the port does almost no business with China, according to a representative.
Instead, like PortMiami, it is watching and waiting for potential changes to cruise schedules, though it was not aware of any major ones, the representative said.
At the same time, Port Everglades has quarantine plans in place dating to the Ebola outbreak of 2014, and has already met with federal and state officials should extreme measures become necessary.
According to the Cruise Lines International Association, cruise lines are stepping up pre-boarding screening for regularly scheduled cruises, while denying boarding outright to countries deemed most affected by the CDC.
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