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By sea: Shipping in the Gulf finds a market yearning for the high seas.


Whether it's thorny Nafta trucking disputes or stifling security after the Sept. 11 terror attacks, increased border delays have meant major headaches for recession-wracked manufacturers trying to get their Mexican-made goods to U.S. markets. Now, several U.S. and Mexican maritime carriers are hoping to cash in on the hassle by convincing manufacturers to ditch the highways for the high seas high seas

In maritime law, the waters lying outside the territorial waters of any and all states. In the Middle Ages, a number of maritime states asserted sovereignty over large portions of the high seas.
.

And in the time-is-money world of cargo delivery, choosing sea over land transportation can save manufacturers a bundle in freight costs. Just ask U.S. automakers, whose success depends on the cheapest and quickest route from the assembly line to the showroom. Some are now trimming as much as two weeks in turnaround time (1) In batch processing, the time it takes to receive finished reports after submission of documents or files for processing. In an online environment, turnaround time is the same as response time.  by bypassing northbound rail lines and shipping out of the port of Tampico to the U.S. ports of Houston, New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , Jacksonville and Tampa Bay Tampa Bay, inlet of the Gulf of Mexico, 25 mi (40 km) long and 7 to 12 mi (11.3–19 km) wide, W Fla., separated from the Gulf by numerous small islands; it receives the Hillsborough River. St. .

"The less time the stuff is in transit, the better it is," says Lori Rafter, head of public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most  at the Tampa Bay Port Authority, which oversees 1 million tons of cargo shipments each year. Rafter is hoping to convert Tampa into the primary hub for Mexico-U.S. short sea shipping by capitalizing on the area's growing size, high industrial density and proximity to Mexican ports.

CHOPPY WATERS

But while increased free trade under Nafta has brought greater demand for short sea shipping, so far only a few carriers have been willing to take on the Mexico short sea route. The challenge, say experts, has been establishing consistent southbound traffic-- bringing U.S. goods into Mexico--as well as the traditional northbound traffic used by U.S. manufacturers.

For Stephen Sargent, chief operating officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
 of Gulf Caribbean Transport, a Tampa-based sea carrier, this meant adding another vessel, the Quito, and moving their Mexican home port from Altamira to Tampico to be closer to Mexico City Mexico City
 Spanish Ciudad de México

City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi
, and cut shipping times and costs. Sargent says the move has allowed him to edge out his land competitors by delivering Chrysler PT Cruisers and Dodge Ram
See also Dodge Ram 50, an unrelated Mitsubishi-produced truck


The Ram is a full-size pickup truck from Chrysler LLC's Dodge brand. The name was first used in 1981 on the redesigned Ram and Power Ram, though it came from the hood ornament used on
 pick-up trucks to U.S. markets in 14 days compared to the standard 35 for land carriers.

"As the crow flies, it's a shorter, more direct route than rail," says Sargent. "We can go around Texas and deliver more vehicles with less damage."

And Sargent isn't just eyeing automakers--with a 76-hour Tampa-Tampico turnaround time, he could be an attractive option for businesses dealing in perishable products as well.

Even so, demand for sea carriers so far has yet to meet expectations, due largely to the lingering U.S. economic recession. But the carriers are confident that as more U.S. companies take advantage of Nafta, things will only get better with time.

"Certainly the key is more growth; there's a lot of companies looking to Mexico to put their manufacturing arms," says Sargent.

TO THE DOCKS

But just where in Mexico U.S. companies decide to build their plants will also be a big factor for maritime growth. Typically, most companies have opted for the north, with its close proximity to the border and easy access to U.S.-bound highways.

However, as the government continues to lure investment to the less developed southern region, most manufacturers will have few options besides maritime carriers.

"We're just too far from the border to drive," says Raul Torre, director of Puertario Progreso, a sea carrier based A transmission system that generates a fixed frequency (carrier) to contain the data being transmitted. See carrier.  in Progreso, Merida. Torre, who ships big name U.S. clothes lines like Tommy Hilfiger Thomas Jacob Hilfiger (born March 24, 1951 in Elmira, New York) is a world-famous American fashion designer and creator of the eponymous "Tommy Hilfiger" and "Tommy" brands. Biography
Hilfiger was born March 24, 1951 and raised in Elmira, New York.
, Levi's, Gap and Nautica, says the lack of rail or truck freight competition in the south has proved an effective shield against unexpected downturns in business.

Though sea carriers still have a ways to go, business is picking up. Last year, about 13% of Tampa's Port Authority's foreign traffic originated in Mexico, compared to just 7% in 2000. Now, carriers just need to convince more companies to set sail (Naut.) to unfurl or spread the sails; hence, to begin a voyage.

See also: Sail
. To help, port authority officials have several infrastructure boosting projects in the works, including plans for new loading cranes and better access to rail lines once goods are off-loaded onto shore.

"Consumers have needs and these needs can be met by short-sea shipping," says Rafter.

Stevenson Jacobs is a Mexico City-based freelance writer.
COPYRIGHT 2002 American Chamber of Commerce of Mexico A.C.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:shipping industry
Author:Jacobs, Stevenson
Publication:Business Mexico
Article Type:Brief Article
Geographic Code:1MEX
Date:Mar 1, 2002
Words:694
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