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HEADLINE: RADAR

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At the Gulf Ports Association's spring meeting, port directors paid close attention to speaker Abdias Peon Garcia, president of Asport, the association representing Cuban ports. Peon Garcia told the port directors that Cuba's port infrastructure has improved, and that Cuba will be ready to handle increased trade. Ports along the Gulf hope their proximity to Cuba will give them a leg up when the U.S. moves toward resumption of trade with the Communist island, as most expect will eventually happen. Several Gulf ports have sent delegations to Cuba to scout out opportunities. Officials from Houston will be there June 6-9, accompanied by a representative of Miami-based Seaboard Marine. The Port of Gulfport, Miss., plans a similar trip. Port Director Gary LaGrange said he's particularly interested in poultry, a top export commodity at Gulfport.Crowley Liner Services was supposed to have been the first U.S. carrier to call at Cuba in 40 years, but the scheduled call was canceled just hours before the ship was to have docked at Havana in April. The reasons for the abrupt cancellation remain murky. Crowley had government permission to call at Cuba under a new law easing trade sanctions on food, medicine and agricultural products. There were rumors that the ship was turned away because some items aboard were not on the permitted list. Crowley won't say. "We've maintained all along that we are not commenting on the shipper or the contents of containers being shipped," said spokes-man Mark Miller. If Sen. James Jeffords of Vermont switches from the Republican to the Democratic parties, putting the chamber in the control of Democrats for the first time since 1994, trade initiatives could be set back, says Peter Friedmann, a Washington transportation and trade attorney who represents the Council of New England Companies for Trade (CONECT) and the Agriculture Ocean Transportation Coalition. This change in the balance of power in the Senate will certainly impact trade votes. "While China NTR, GSP renewal, support for Customs staffing and automation should not be impacted, we can expect that Trade Promotion Authority, Vietnam treaty approval, Free Trade Agreement of the Americas initiatives, and the U.S.-Chile FTA will now face tougher sledding, as will, of course, President Bush's tax cut legislation," Friedmann wrote in a memo to clients last week.

An active merchant fleet bolsters the role of the United States in the international shipping community, says Secretary of Transportation Norman Y. Mineta. Speaking to the Propeller Club in Washington last week, Mineta noted, "We are without question the key port state in international trade; ships of nearly every flag visit our country regularly. That fact also brings with it an enormous responsibility to lead the world in enforcing the highest standards of ship safety and environmental protection." But Mineta also said "the presence of U.S.-flag ships in the international commerce of the United States validates America's role as a flag state. I cannot over-emphasize the importance of this status in international bodies like the International Maritime Organization." He added, "Our status, within the IMO, is legitimized by our U.S.-flag fleet."

LOAD-DATE: May 30, 2001