Sans Trade With U.S., Supply Chain Questions Remain For Cuba’s Transshipment Hub
The Trump Administration has yet to determine its policy toward the Communist Caribbean nation
Latest NewsTransplace announces TPG is new equity partner Amazon/Whole Foods Deal May be Supply Chain Game Changer LIFT making excerpt from MH29.1 standard available for free MHI announces new leadership appointments for 2018 Food logistics enters new transformational stage More News
Latest ResourceNew Attitudes for S&OP / IBP to Keep Pace with Evolving Markets Thursday, August 24, 2017 | 2pm ET
At this time last year, U.S. seaports in Southeast and Gulf regions were telling shippers that they were well positioned to take advantage of trade with Cuba as restrictions were gradually lifted.
The election of populist President Donald Trump, may have altered those plans, however, as the new leadership team has yet to determine its policy toward the Communist Caribbean nation.
Prior to embargo initiated by the Kennedy administration over nearly 50 years ago, the ports of Mobile, Tampa, Miami and New Orleans were all major entrepots for this lane of waterborne commerce. Shippers attending the recently concluded “Critical Cargoes Conference” in New Orleans were told that when and if trade is resumed, the Cuban port of Mariel will be ready.
“We are prepared to become the newest transport hub for the America’s,” declared Charles Baker, president and CEO of the Port of Mariel. “Our position as a transshipment center is also viable.”
Baker said he envisions the three-year-old container facility on the northwest coast of Cuba, 26 miles west of the capital city of Havana, as the “new transport hub for the Americas” in “a very, very good location for a transshipment hub.”
Total container throughput at the Port of Mariel grew from about 160,000 twenty-foot-equivalent units (TEUs) in 2014, noted Baker. This was its first year of operation following end of container traffic at the relatively shallow Port of Havana, to 330,713 TEUs in 2015 prior to reaching 325,319 TEUs in 2016.
“The Mariel’s current annual throughput capacity is 800,000 TEUs, with future expansion to boost that number to 3 million,” he said.
Under the current U.S. embargo requirement vessels must wait 180 days after leaving a Cuban port before calling at a U.S. port. Baker considers this a major handicap, calling it Mariel’s “achilles heel.”
“We would like to see Washington officials address this so that we may move on and welcome a new era of business,” he said.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Supply Chain Management Review Magazine!Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
The Customer-Centric Supply Chain The Supply Chain Workforce of the Future View More From this Issue