CII Seminar on American Exports Urges Shippers to Utilize Government Resources

News Release Containerization & Intermodal Institute (CII) July 6, 2012

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CII
SEMINAR ON AMERICAN EXPORTS URGES SHIPPERS TO UTILIZE GOVERNMENT
RESOURCES; HEARS
REMARKS FROM RAIL AND OCEAN  
CARRIERS,
SHIPPERS, MAJOR PORTS AND OTHER INDUSTRY
LEADERS </TD></TR></TBODY></TABLE>
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CHICAGO--Michael
Masserman, recently appointed Executive Director for Export Policy,
Promotion, and Strategy at the U.S. Department of Commerce, urged American
exporters to use the expertise, resources and facilities offered by the U.
S. Commercial Service to promote their goods abroad.
 
Speaking at the
Containerization and Intermodal Institute conference here, Mr. Masserman
noted that every $1 (dollar) spent on the commercial service results in
$235 in U.S. Exports. "More than 96 percent of the world's consumers live
outside of the United States," he said. "The goal of doubling exports is
daunting, but some sectors---such as automobiles---are showing terrific
growth."
 
Mr. Masserman is in
charge of facilitating the President's National Export Initiative (NEI),
an initiative that President Obama laid out in his 2010 State of the Union
to double exports by the end of 2014. He also oversees the Trade Promotion
Coordinating Committee, which is made up of the relevant trade agencies
within the U.S. Government. In addition to helping drive a "whole of
government" approach to the NEI, Masserman coordinates closely with
private-sector companies, trade associations, chambers of commerce, and
institutions such as Brookings, on global trade/export
policies.
 
The CII half-day
conference, "Doubling U.S. Exports--a Reality Check," drew more than 100
attendees and heard remarks from ten experts including representatives of
government, rail and ocean carriers, ports, third-party logistics
executives and shippers. Mr. Masserman, who was the keynote speaker, said:
"Shippers and potential exporters do not make enough use of what we offer.
But our Export Assistance Centers in 100 U.S. locations work with overseas
colleagues to get whatever information is needed and embassies and
consulates in 74 countries abroad make contact with local government
representatives and business."
 
Supporting him was
Jeff Graber, Senior International Trade Specialist, U.S.
Commercial Service, Chicago, who spelled out how his agency can help U. S.
companies. "We can help with far-reaching information-such as market
potential and challenges, guidance on cultural issues and protocol, find
sales channels and business partners, identify and assist with legal and
regulatory hurdles and settle disputes." He also noted that market
potential and challenges as well as trade shows and missions are on the
service's expertise list. "We urge you to use us," he said.
"There is a wealth of assistance waiting to help you grow your
business."
 
Christopher Lytle,
Executive Director of the Port of Long Beach, noted that his
port is the second busiest in the United States, "But for
about 15 years now, half of what export to Asia is empty boxes," he noted.
"Exports have grown, just not as fast as imports. In fact,
they have doubled since the mid-1990s--but that has taken nearly 17
years. In that same time, imports have increased
four-fold."
 
Mr. Lytle noted that
he believes we can double exports. But what can we do to accelerate the
growth of exports? "All of our empty containers are a constant reminder
that we have a big opportunity." He concluded: "Exports are
going to growth, particularly exports to Asia.China is a
major target for us; they already have so much of our money selling their
products to us.Free Trade Agreements will boost
exports.Lowering trade barriers is going to make a big
difference."
 
He said the
top-growing U.S. exports are likely to be grains, fruit and meat. "These
exports are already well regarded and in demand in Asia, and they will be
in even more demand as Asian economies grow.So can we double
exports? I say definitely."
 
James Newsome,
President and CEO of the South Carolina State Ports Authority, noted that
there are limitations for export growth. These include container supply,
transload capacity, carrier pricing on low-value commodities, harbor depth
and dredging needs, inland weight issues, rail and truck capacity and
alternative sourcing. "Emerging markets will continue as a growth engine,"
said Mr. Newsome. "However, the U.S. focus on exports is appropriate but
this focus must be on products that provide differentiation. Logistical
challenges will be more significant," he said, "which is why creative
solutions are required."
 
Gregory Tuthill,
Senior Vice President of Sales and Marketing for NYK Line, noted that
"export market conditions continue to be
characterized as brisk with high potential for future growth but at more
modest increases with the following attributes, "The
transpacific export market growth will continue to ease based
on slower economic growth." He added that food
products will be more resilient to some of the global economic
challenges, there are signs of demand easing
with slower growth forecasted for China, Brazil and Europe
and the European crisis is linked to all markets
and will have some impact on U.S. exports based on slower or negative GDP
growth.
 
Also from the ocean
carrier side, Edward Zaninelli, Vice President of the Transpacific
Westbound Trade for OOCL, noted that infrastructure improvements need to
continue, including East Coast ports being upgraded for 8,000-TEU
containerships and placing a major transloader in the Los Angeles/ Long
Beach basin on the West Coast. Also, a near dock rail terminal is needed
for the BNSF rail also in LA/ Long Beach. "Rates have to cover costs,
construction at the ports needs to be faster and everything should be on
the table as transparency is required," he added. 
 
Terry L. Bunch,
Director, Logistics and Customer service for Rayonier, Inc., a global
supplier of performance fibers, timber, real estate and wood products,
also urged less ocean freight rate volatility. As an active exporter, Mr.
Bunch echoed the call for an adequate, efficient infrastructure and an
adequate supply of high quality equipment. "We also need to succeed a
globally competitive economic regulatory environment," he
added.
 
Norfolk Southern's
Ed Elkins, Director International Marketing, for the railway
spoke from an intermodal perspective and said that rail has
new capacity, new corridors that are either operational or
nearly complete, new terminals opening in 2012, new service lanes
available across the network and an expanded service portfolio. Prepared
for a growing export market, Mr. Elkins said that his company has
expanded, highly reliable service coverage from all major East Coast ports
as well as efficient and flexible intermodal operations across the
network. 
 
Taking a respected
consultant's view, Paul Bingham of CDM Smith feels the goal is a
"stretch." "To increase U.S. exports in five years from $1.6
trillion in 2009 to $3.2 trillion by the end of 2014 is ambitious now as
we are coming out of recession. A strong export
rebound was up 16.7% in 2010 and up almost 15% in 2011 to $2.1 trillion,
ahead of schedule to meet the goal," he said. "However 2012 U.S. export
growth could slow to 5%, recovering perhaps to near 8% growth in
2013-2014, leaving the goal unmet. The U.S. would have to see
exports grow at an average rate of 14.4% for each of these last three
years to meet the goal."
 
Kenneth Sine,
director of trade for ocean services for 3PL C.H. Robinson Worldwide,
Inc., with great passion called on the industry to come
together to address the export challenge "because we love what we do and
want to take our experience and know how to help the U.S. economy."
 
 
CII Board of
Directors members Michael DiVirgilio, Senior Vice President,
Development, at Ceres Terminals in North America, and Ashley Craig, an
attorney with Venable in Washington, DC, served as moderators for the
event. CII scholarships of $2,500 each were presented by board member Anne
Kappel, Vice President of the World Shipping Council, to Yue
Geng, a Ph.D. student at Northwestern University Transportation Center and
to Ted Gregory, a railroad engineer who studies at the University of
Denver Intermodal Transportation Institute. Ms. Kappel noted that
successful CII programs help support he CII scholarship
mission.
 
The Containerization
& Intermodal Institute (CII), founded in 1960, is a nonprofit
dedicated to promoting and supporting the business of international
trade industry awareness, preserves the history of
intermodalism, and engages scholarly interest in the field by organizing
educational conferences and seminars, serving as an information resource,
providing networking opportunities, offering career guidance, arranging
internships and facilitating scholarships. The organization also presents
the Connie Award, an esteemed honor in the industry. For more information,
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