How is freight elsewhere?
Posted on May 13, 2009 - 10:00pm by Marshall J. Gruskin in Trucking
Let me just say, as kind of an FYI, that I asked my company if it was possible to go with one of our “local” drivers South over the border to Mexico to see where all the manufacturing plants are. I want to take some photos and talk to (interview) Mexican drivers to hear the other side of this whole “cross-border” situation. I’m here in Laredo only a few miles from Mexico. That “request” was denied because of health and safety concerns. If and when that changes, I’m going to try again. Wayne Weisser, our editor, also suggested I meet with Porter Corn of http://mexicotrucker.com/ and I will try to do that as well.
Ok, but let’s move away from the US and Mexico. And let’s look away from trucking. We’ve all seen all those containers from China and other parts of the Pacific Rim and Europe backed to the dock at Wal-Mart, Target, Home Depot and others. As reported Tuesday in The New York Times, exports from China are down 22.6%, from the Philippines (I bought a shirt recently from Target that was made there) down 30.9%. There are now about 300 cargo vessels waiting for freight in the port of Rotterdam. 130 ships are sitting in the Strait of Malacca in Singapore. Things are so bad, plants are growing underneath many of the waiting vessels because they’re dead in the warm water.
To charter a freighter to move goods out of China use to cost $300,000. Because of the slow economy, that has gone down as low as $10,000! A 40 ft.container of Chinese “merchandise” being shipped to Western markets typically cost $1400 plus a fuel surcharge. That has gone down as low as $300. From The New York Times article: “Western consumers, still adjusting to losses in value of their stocks and homes, are in little mood to start spending again on non-essential imports, said J. Felman, the assistant director of the Asia and Pacific division of the International Monetary Fund. “For trade to pick up, demand has to pick up,” he said. “It’s very difficult to see that happening any time soon.”
So drivers, I know this doesn’t make you feel any better. I know some of you will find this useless information. But remember (unfortunately) we all part now of one big (happy?) supply chain. Right? Whatever. As I said I’m “parked” down here in Laredo. I’ve been here since Saturday waiting on a load. It’s 107 degrees and not getting any thinner. While freight seemed to be picking up a bit, things seem to have slowed down again. And it seems the same all over the world.
Photo credit: http://morrisnewsservice.com/ports_project/photos.shtml and https://www.allposters.co.uk/-sp/Container-Sh…NYT article – http://www.nytimes.com/2009/05/13/business/global/13ship.html?pagewanted=1&hp
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Be glad to meet with you and have lunch with you Marshall, anytime it is convenient for both of us.
I’ve been home a week now, by choice. My trailer will probably cross today though and it will begin another 10 day cycle. If not today, tomorrow.
Shoot me a PM and I’ll give you my number or ask Wayne for it.
I read somewhere recently that there is such an oversupply of ocean-going container ships that the third-world countries that break them up into scrap are overloaded and have them stacked up outside the harbors waiting for the cutting torch. The containers themselves seem to be becoming quite attractive as building options in some areas. Check this out: