Companies doing business in and around Port Everglades grew a little more cautious this spring following President Donald Trump’s plan to impose higher tariffs on trading partners around the globe.
It wasn’t a big drop in optimism among the cargo, cruise and other companies involved in the maritime industry in Broward County, but it was a noticeable change.
“This year there was a little bit more concern from the members,” said David Menchof, a supply chain professor at Florida Atlantic University. He surveyed dozens of companies conducting business through Port Everglades who are members of the port’s industry trade association.
The obvious source of the growing concerns — the moving targets of tariffs.
“The uncertainty of it all,” said Menachof.
This week, the Trump administration faced a self-imposed deadline to impose tariffs on imports from dozens of countries, but instead announced that they would start next month.
The president signed a new executive order Tuesday pushing out the deadline to August 1. His so-called “Liberation Day” of tariffs was April 2, however, many of those tariffs were paused a week later as the stock market fell and bond interest rates increased in reaction to investor worries about the economic impact of such sudden and historic import taxes. Instead, The president announced a 90-day pause to negotiate individual trade pacts with dozens of countries. Forging such detailed agreements has been elusive in a short period of time. That 90-day extension expired Wednesday.
“I have determined, based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension,” said Trump’s latest executive order.
“Firms just don't feel comfortable making their long-term investments in this kind of mobile, fluctuating situation,” said Menachof.
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The survey ranks company sentiment between zero and 1 — with a .5 reading indicating a neutral outlook balanced between pessimism and optimism.
A year ago, the trade association members had the highest optimistic outlook since the survey began four years ago. The latest survey in April and May found a neutral forecast.
Companies reported being more optimistic about their own business than the industry at large. The survey was collected in the weeks after the first delay in tariffs, which may have “influenced” the results. Menachof expects to conduct another survey in the fall.
Total imports through Port Everglades through May is up slightly from a year ago. The port has welcomed $5.6 billion worth of imports this year, up almost 2%, according to USTradeNumbers.com.
The port's top import by value is medical instruments. It also is a top destination for foreign-made clothes such as t-shirts and sweaters.
Dominican Republic, Brazil and Costa Rica are among the top origins for goods imported through the port in Fort Lauderdale.
Tens of thousands of jobs are indirectly linked to the port. The FAU survey found no companies are firing workers. But hiring plans have fallen. Three out of four were looking to hire a year ago. Now it's less than half.
“ Thankfully not a single respondent said they're eliminating employees, but they're just putting a pause at this point,” Menachof said.
The jobs reflected in the survey include dockworkers, stevedores, truck drivers, financing and administrative positions. Fewer firms are looking for workers, but those that are continue to report having a tough time finding qualified applicants.
About two-thirds of firms reported using artificial intelligence, or AI, in some capacity, usually for data analysis, sales and marketing. The technology isn’t replacing workers, though.
“(Companies) are not hiring because of the tariff concerns and the uncertainty going on rather than the AI,” said Menchof. “The port industry is still quite labor intensive. You can't fully automate.”
