Dubai Ports selling out

[Rex Kickass]

The Panama Canal is mostly a cruise ship channel.

 

 

You're absolutely wrong on this. Love Rex Kickass, the travel agent.

[kapkomet]

So outrageously wrong that I've never seen anything wronger in my life.

 

So wrong that other patently wrong things seem right by comparison.

 

So wrong that we should start calling Tex "Wrongy Wrongington."

 

Everybody pile on! 

 

Damn, the flames are coming out now. It must be boring at work today for all of us.

[Balta1701]

You're absolutely wrong on this. Love Rex Kickass, the travel agent.

Actually, I believe he's almost 100% right on that.

 

Rex, you're wrong. How dare you ever show your face here again. Go listen to your western music.

[FlaSoxxJim]

Actually, I believe he's almost 100% right on that.

 

Rex, you're wrong.  How dare you ever show your face here again.  Go listen to your western music.

Western music is wrong.

[Balta1701]

Western music is wrong.

But it feels so right.

[Texsox]

You're absolutely wrong on this.

 

Based on my observations of 20 years in manufacturing, and setting up sourcing operations overseas, that is my opinion. I will agree, I am not 100% correct, neither am I 100% wrong.

 

Some larger, bulkier stuff will go sea. But look at any shippping trends over the last 20-25 years and see the increases for air cargo. We are making things smaller and lighter, which ships easier by air.

 

From a financial standpoint, do you want you invoice to start on March 1 via air or April 3 based on sea? Rarely have I seen billing terms that start FOB shipping point. It is almost always the clock starting once the customer has possession of the goods.

 

Another example, shipping the record player by parents owned by air would have been inconceivable. Shipping my son's iPod makes sense.

 

And getting back to the Panama canal, how does it effect is at all anymore?

[kapkomet]

Well, I have to go do some real work now. Lunchtime is over.

 

On the aircargo issue, the capacity is so small compared to the freighliners and the cost is so prohibitive, that's why it is not true, among other reasons.

 

Don't kill each other.

[southsider2k5]

So outrageously wrong that I've never seen anything wronger in my life.

 

So wrong that other patently wrong things seem right by comparison.

 

So wrong that we should start calling Tex "Wrongy Wrongington."

 

Everybody pile on! 

 

Tex is so wrong, I don't wanna be right...

[kapkomet]

Oh, and one other point. Those toys that come for Christmas from China, they're in the ports in September. Just an FYI from someone who was in 'da biz'.

[Balta1701]

Based on my observations of 20 years in manufacturing, and setting up sourcing operations overseas, that is my opinion. I will agree, I am not 100% correct, neither am I 100% wrong.

 

Some larger, bulkier stuff will go sea. But look at any shippping trends over the last 20-25 years and see the increases for air cargo. We are making things smaller and lighter, which ships easier by air.

 

From a financial standpoint, do you want you invoice to start on March 1 via air or April 3 based on sea? Rarely have I seen billing terms that start FOB shipping point. It is almost always the clock starting once the customer has possession of the goods.

 

Another example, shipping the record player by parents owned by air would have been inconceivable. Shipping my son's iPod makes sense.

 

And getting back to the Panama canal, how does it effect is at all anymore?

Well, the other side of that token is that all evidence shows that the amount of goods coming in through ports in the last decade or so has absolutely skyrocketed. Every single major container-based port in the U.S. set a record for the amount of cargo it processed in 2005, according to the LAT.

 

Air cargo may increase, and it may increase at a faster rate than shipping is growing, but that won't happen forever, espeically as fuel prices continue to increase. Many companies that manufacture things are happily willing to accept the difference between a 1 day delivery and a 2-3 week delivery if the price difference is large enough, and based on the size of those containers, the price difference certainly is.

Edited February 24, 2006 by Balta1701

[Rex Kickass]

Actually, I believe he's almost 100% right on that.

 

Rex, you're wrong.  How dare you ever show your face here again.  Go listen to your western music.

 

Most cruise ships are "Post Panamax" which means that they can not actually enter the Panama Canal because they just won't fit.

[southsider2k5]

Aren't they working on an expansion of the Panama canal? I thought I remembered seeing something on History or Discovery to that extent?

[Texsox]

Resume Highlights

 

Executive Director, South Texas Manufacturers Association

Member Maquilla Association

 

If we are talking steel, cars, logs, then yes, sea is still a viable option.

 

If we are talking electronic devices, and other high dollar, lighter product, it is going air. There just is no justification when you can fill a plane and have it here tonight to wait 6-8 weeks. Via letter of credit, I can have my invoice paid and in my account while you're still wondering if the ship cleared that tropical storm.

[NorthSideSox72]

Member Maquilla Association

 

 

I could Google it, but it seems you could provide a better explanation.

[Texsox]

Oh, and one other point.  Those toys that come for Christmas from China, they're in the ports in September.  Just an FYI from someone who was in 'da biz'.

 

Except the hottest video games that are rushed into production in August and September.

 

How many of those games visited Panama on the way?

[Balta1701]

And getting back to the Panama canal, how does it effect is at all anymore?

Interesting story...Back when the U.S. was first considering constructing the Canal...there was a deal struck with Nicaragua for a canal through that country, which would have gone through lakes, been much easier to build than the Panamanian route, and which I believe would have been wide enough to process even the Nimitz carriers.

 

But, it was basically sabotaged by Teddy Roosevelt.

 

The House of Representatives quickly passed a bill to build the Nicaragua canal. Then the French company reduced its price for the land and building rights in Panama. It decided some money was better than no money at all.

 

President Roosevelt was pleased. He gave his support to the Panama plan. When the Senate began debate, however, it appeared the Nicaragua plan would win.

 

Then a volcano exploded in the caribbean area. A city was destroyed. Thirty-thousand people were killed. Soon, reports said another volcano had become active and was threatening a town. The volcano was in Nicaragua. Nicaragua's president denied there were any active volcanoes in his country. But one of Nicaragua's postal stamps showed a picture of an exploding volcano.

 

That little stamp weakened support for the Nicaragua canal. The Senate passed a bill for a Panama canal, instead. The House of Representatives changed its earlier decision. It approved the Senate bill.

(Voice of America News)

[Rex Kickass]

Aren't they working on an expansion of the Panama canal?  I thought I remembered seeing something on History or Discovery to that extent?

 

Wouldn't change the cruise thing. Cruising through the Panama Canal is quite expensive so only a couple lines have semi regular cruises (Princess, Holland America and Celebrity.) And those only travel through one lock to save on taxes. Usually the transcanal cruises are reserved for repositioning sailings to move a ship to Alaska or the Caribbean.

[Texsox]

 

I could Google it, but it seems you could provide a better explanation.

 

Twin plant operations. They have production in Mexico and managment / logistic / distribution centers in the US. They were born about 50 years with some nifty bi-national legislation that basically created a little bit of the US in Mexico and vice versa. Under the old laws, everything going to Mexico had to come back out to the US. For example, we were manufacturing aluminum plates for wheelchairs. My customer was across the street from me.

 

I had to send my stuff back across the border, clear US and Mexico customs, and back to my customer. He in turn would add them to the wheelchair and they would again head back across the river.

 

Now it can all be done via paperwork and careful documentation.

 

The classic maquilla operation would be someone like Vanity Fait which makes bras and related textiles.

 

They would cut the fabric on the US side, truck it across for sewing and packaging, then it would come back across the river and sold to Vickie's Secrets and other retailers.

[FlaSoxxJim]

 

I could Google it, but it seems you could provide a better explanation.

He meant to write "Tequila Association," but since he's not just a client but also a member in drunk standing he spelt it wrong.

 

Tex: Wrong in So Many Ways.

 

If Loving Him is Wrong (I don' Wanna Be Right).

 

I can't quit you, Tex!

 

[/looking for Brokeback smiley. . . ]

[southsider2k5]

Wouldn't change the cruise thing. Cruising through the Panama Canal is quite expensive so only a couple lines have semi regular cruises (Princess, Holland America and Celebrity.) And those only travel through one lock to save on taxes. Usually the transcanal cruises are reserved for repositioning sailings to move a ship to Alaska or the Caribbean.

 

I thought there was something in the works to widen the canal to be able to handle the modern supertankers and then some... Maybe I was reading speculation? Can anyone else help me out here???

[Balta1701]

I thought there was something in the works to widen the canal to be able to handle the modern supertankers and then some...  Maybe I was reading speculation?  Can anyone else help me out here???

I believe that Discovery did run a program covering whether or not it's possible, but they also covered Dave Stevenson's idea of using a nuclear bomb and a big blob of iron to send a probe down to Earth's core, so them covering it doesn't mean it's going to happen.

 

A few years ago they did complete a project to Widen and straighten the Gaillard cut, the narrowest point on the Canal.

[kapkomet]

Resume Highlights

 

Executive Director, South Texas Manufacturers Association

Member Maquilla Association

 

If we are talking steel, cars, logs, then yes, sea is still a viable option.

 

If we are talking electronic devices, and other high dollar, lighter product, it is going air. There just is no justification when you can fill a plane and have it here tonight to wait 6-8 weeks. Via letter of credit, I can have my invoice paid and in my account while you're still wondering if the ship cleared that tropical storm.

Big difference between Mexico and China.

 

And most of that stuff is not air cargo, it's LTL.

[Texsox]

Big difference between Mexico and China.

 

And most of that stuff is not air cargo, it's LTL.

 

Most maquillas operate their own trucks and usually have full truck loads, not LTL, across the border, but we digress. I was talking about some of the parts they need for their production. A timer from Taiwan to a washer manufacturer in Reynosa is more likely to be flown than floated. A face plate from Malaysia is flown as often as shipped. Again, there is times for both.

 

But to believe that control of the Panama Canal could in some way cripple our economy of cause some military problem, is not accurate as I know it to be.

[Steff]

If we are talking electronic devices, and other high dollar, lighter product, it is going air. There just is no justification when you can fill a plane and have it here tonight to wait 6-8 weeks.

 

The justificaton from suppliers to their customers, and onto their shipper and the distribution agent (Bekins, Allied, North American, etc) is just that. More then 75% of our sold goods business arrives in the US on a boat then is either picked up from port, or railed all over the country to local agents to be delivered to stores or homes. Air shipping is almost never used because of the cost. And those willing to pay it are 99.5% of the time household good deliveries (private moves).

[Balta1701]

But to believe that control of the Panama Canal could in some way cripple our economy of cause some military problem, is not accurate as I know it to be.

Can modern destroyers/cruisers even get through there?