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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (77925)4/18/2008 1:58:53 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 116555
 
Well this is another reason to start buying the despised USD as the container issue will be solved within few months



To: elmatador who wrote (77925)4/18/2008 8:29:46 AM
From: ajtj99  Read Replies (3) | Respond to of 116555
 
The main problem is most of the exports are low valued goods (scrap metal, scrap paper, hay) that have very low value and as such, have very low shipping tariff rates.

When it costs $1500 to move a container round trip from LA to Chicago and you're only getting $2200 to move it from Chicago to Hong Kong, there's not a lot of incentive to speculate and leave empty boxes in Chicago.

A container of refigerated computer chips would probably cost $7,500 to ship from Chicago to Hong Kong. The lawn mowers mentioned may cost $3,000.

On the flip side, the inbound containers bring $2,300 from Hong Kong to LA, so the economics discourage inland container staging right now. If rates increase on the westbound shipments, that would change.