A Contradiction in the Cargo

[alp227]

Source: NY Times

Analysts have been raising their predictions for holiday spending ever since the back-to-school shopping season was stronger than most had expected.

But the people who work at the companies that ship and transport retailers’ goods are not nearly as optimistic about holiday sales.

When retailers expect that Americans will be crowding into their stores, their orders pile into the nation’s ports in August and September for delivery to stores by late October. But logistics companies say that is not happening this year.

“We’re concerned, because usually at this time, you see this peak,” said Richard D. Steinke, the executive director of the Port of Long Beach in California. “We haven’t seen it.”

Read more: http://www.nytimes.com/2011/10/12/business/at-us-ports-flow-of-imports-suggests-soft-holiday-shopping-season.html?pagewanted=all

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Oh, look at all those unemployed American blue collar workers. Maybe that explains why the products to be gifts need to be IMPORTED.

[No Elephants]

1. And maybe importing stuff is the reason for all those unemployed American workers.

There's a certain symmetry to it, isn't there.

A friend who used to own a small metal working company in the 1980s.

He told me that he used to do business with Wang computers and Ford. The parking lot at Wang was filled with foreign cars, while the Wang folk complained about the US economy.

Meanwhile, the people at Ford were using foreign made computers while complaining about the US economy.

Astute guy.

BTW, it's not only blue collar workers that lose jobs.

When his shop finally went belly up, he and his partner, the company's sales guy, were out of work, as was their bookkeeper and their office manager. And, I imagine his suppliers got shakier, too.

He opened up a diner and his partner went into buying and selling real estate. You can't offshore either of those things, though I guess components of both can be offshored, and therefore are.

[Demeter]

4. And when 9/11 Shut Down tourism, Did the diner stay open?

I doubt it.

And now, the real estate guy, I hope he's qualified for social security.

[Citizen Worker]

2. Not to worry. The senate finance committee just passed the slave trade agreements with Korea,

Panama and Colombia. Jobs will now cascade into the US and our 23% unemployment rate will evaporate overnight. Right, bet your small change first.

[Sherman A1]

3. "Analysts have been raising their predictions for holiday spending"

This is interesting on several levels as retailers such as Best Buy are not adding as many seasonal workers as they have in the past according to reports.

So this statement is pretty much just wishful thinking on the part of this group of Analysts hoping to not be pessimistic in an effort to spread some hope for a good holiday season.

It could mean fewer markdowns or out of stocks if they are correct.

Most likely it scenario based upon the facts of less inventory & fewer workers being hired to support those sales means they are pretty much just full of hot air.