Global Trade This Week – May 30th, 2023
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Keenan Brugh 0:00
You're watching Global Trade This Week with Pete Mento and Doug Draper.
Pete Mento 0:10
Hello, everyone, and welcome to the greatest free web TV show and podcast on global trade logistics and economics. I don't know it's probably better than anyone you have to pay for to, you know, available today. Global trade this week brought to you by our good friends at CAP logistics, by Pete mento. And with me is the esteemed venerable world renowned Don Draper. Doug, how's it going, buddy?
Doug Draper 0:38
Hey, I'm doing great. We're on the back end of Memorial Day, the official unofficial start to summer. So things are going well, I'm good, good weekend. I did more. Just nothing really big this weekend. So I'm all sore. I was doing honey do projects to house and I woke up this morning like my back is sore, my hammies are sore and I'm like, I'm getting too old for this stuff. It's my brother says you got to outsource that shit. So I think that's what I need to do.
Pete Mento 1:08
My good friend Hector says that he's a job creator. When he gets a list like that, he finds somebody who's probably better suited to do it. And he asked them to do it and he creates a job, you know, like outsourcing it. So yeah, buddy. I went for a hike. I was telling you and Keenan I wanted to champion falls in the White Mountains. And I'd like to make it sound more. More woodsy. You know, you and k&n? We're always talking about all this outdoorsy, rugged Coloradan stuff. I just really went for an uphill hike outdoors. Look at a waterfall yesterday. That's all right. I mean, it was fun. It was a lot i I will admit I did. I did enjoy it. I will be doing a lot more of it. So I did enjoy. I did enjoy it. I did not enjoy being eaten alive by these Seagull size mosquitoes that we have in New Hampshire. But other than that, it was great, man. I really did enjoy it.
Doug Draper 2:07
Good. Good. Good. Nice. Well, cool. Let's get this party started. So my first one goes back a little bit to my comment last week. And I know we don't like to talk about the same topics multiple times. But last week, my electric vehicle and Evie situation was personal. This one was some some news that popped up I saw on freightwaves that popped up earlier this week that talks about California trug trucking reg regulations specific to drayage companies. And the one thing that caught my attention is how fast this new regulation is coming on board. So without going into details and all the acronyms. Essentially, if you are defined as a drainage company in Southern California, you're going into the port to pluck containers and move them around. effective January 1 of 2024. Now I want to put that into perspective. Pete That's 253 days from today. 250 days, is that if you want to expand your fleet, the only thing that you can purchase is a zero emissions truck. Again, 250 days from now, if you want to grow your fleet, you don't have to retro anything you already have. But if you want to grow zero, not low emissions, reduced emissions, zero emission. So here's, here's the thoughts that came up with that be, first of all, where the hell do you buy a zero emissions trip truck that's capable of hauling 40,000 pound ocean containers, right? There's not a lot of choices out there. And when they are they're extremely expensive. And oh, by the way, a lot of the drayage companies are mom and pops because it's short haul. It's not like you know, some of these JB hunts in Schneider and swift. They're not messing around with drainage and the Port of Long Beach so not only like Where the hell do you buy one? My gosh, they're pretty expensive. And oh, by the way, I gotta charge it every single night. So where the hell do you charge it? We're gonna have to buy a charging station. Well, where the hell do you get that? Their backlog, you don't have the ability, your specific city Pete doesn't have enough power to hook up an Eevee charging station. So you're, you're you're in a rock and a hard place, right. So it's just weird to think the shocking thing Pete again, 250 days from now, that rule goes into effect in the infrastructure to support it is non existent. I experienced it as a consumer, just with my personal vehicle on the rental car. There's a whole nother level and it's, it's scary. I think what's gonna happen is that fleets are gonna get redefined as not drayage companies so they don't have to comply. And you know, you know, I get it right. But this swinging up a gavel in Sacramento, California doesn't really understand the implications of the realities, when you deal with a mom and pop that has to be compliant. They may want to be compliant, just like I want to be compliant, but the infrastructure is not there. I experienced it firsthand last week. And there's no way in hell that these companies are going to be available. So there's not going to be any new any new equipment purchased. And if it is, there's so much lacking to keep it moving forward, as far as the trucks charge moving around. And eventually, there's going to be less trucks that are zero emission to perform this work. So that means more congestions, more delays, more problems. So anyway, I just the Eevee thing I know we spoke about, but this one was just kind of a shocker for me. And I wanted to bring it up. So I don't know if you've heard about that, Pete or have any take on it.
Pete Mento 5:55
Yeah, I've got a lot of thoughts on this. So the first one was, as always compliance for me, compliance and enforcement. So my first question was, who is responsible for enforcing it? It's kind of the operator. So when you're when you bring your truck in, they they're asking you at the gate? Is your truck hybrid? Is a diesel? Is it electric? Is it gas, you got to prove it to me. So guess how you prove it, you've got a barcode on the door or on the you know, in the windshield of your car, and they they hit it with the you know the thing, and then you've got it, you've got to be able to prove to them what it is. But there's no, there's no one place where they're keeping it. So it's all being done on paper, by the port operator. And by these people that are managing this, which is it's not done by the state, it's being done by the port operators, which are private, they have to report all this to the state. And the state is determining how to hand out fines and penalties, which are essentially attacks. So if you wanted to continue to do this, that's fine. But you're going to end up paying a fee or penalty, which is in effect, going to cost you more money, which is going to end up being paid by us. So are you going to get these trucks eventually? Eventually? Are you going to want to go out and seek them? Instead of paying these fines and penalties? Of course you are because you don't want to end up being more expensive than somebody who doesn't have them? Which is how they're gonna get people to eventually do it. But if there's no trucks to be had, how are you going to be able to compete with people who have them? That goes nuts, that tail, you know, I have a friend named Greg Haber, with Bamako who built a software system that can manage this for the small truck fleets, you know. It's certainly going to help but it has to be adopted, who's going to push the adoption of this stuff, and I guess we'll see with all that. But it's one more instance where they thought of something where they thought they could help without thinking about how they were going to enforce it. Whether or not the infrastructure could handle it, if they actually had the equipment available for people to deal with it. If they were going to come up with a way to finance it for people, what they were going to do with the existing equipment. So what are things going to happen to all these diesel trucks? Are they just going to disappear? Is Dino's going to snap his fingers? And they're all just going to go into the list and float away? No, you're going to end up someplace, there was an excellent article about all these gasoline cars that are being resold in Africa right now to consumers in Africa who are happy to buy them and drive them all the live long day at reasonable prices. They're not buying electric cars. People are still making parts for them. And they're going to be driven for a long time. Yes, we're going to adopt gas cars, electric cars, and yes, that's going to be the case. But that is not going to make a dent in the problem. Until industrialized countries like China and India stop polluting the environment. We're not going to make a dent into it until consumption goes down. And the people that are using our desire to consume lower their actual co2 creation can make us stuff that we probably don't need the first place. Yeah,
Doug Draper 9:17
yeah. Well, California sets the stage right. So hopefully they if they falter, or have some problems, there's gonna be a lot of naysayers that say, See, I told you. So there's an extra layer of let's get it done right.
Pete Mento 9:30
It's just going to send more cargo to other ports. It's just gonna send more stuff to the east coast where it's going to continue to increase the value of that space and keep prices higher on the East Coast. And I'll tell you after spending a lot of time with the port's over there, they are happy to take that cargo and they're doing a damn good job with dealing with the congestion out there. And people are pretty happy with the service that they're getting in New Jersey in New York and Jacksonville you know all over the place. Savannah for darn sure Charleston this list goes on and on. So you California can keep shooting themselves in the foot between labor shortages and regulation. They are set up to absolutely Excel out there. And this is just making it harder and harder for them to do so.
Doug Draper 10:11
Yeah, yeah. Well, good topic. Hopefully our listeners will make some comments. Shifting gears, my friend, what's your first one? Yeah,
Pete Mento 10:20
for me, so that feeling. So I did a trade school about this two weeks ago, and over the weekend, there was a bit of an agreement, you know, a compromise that Mr. McCarthy came out and said that he had Mr. Biden had come to, which is fine. But that's nothing if Congress in the Senate don't agree to it. And it has to go through the Rules Committee. So a couple of things about this agreement, it's important, because if we don't get the debt ceiling increased, for those of you who aren't aware of this, it doesn't allow our government to go out and borrow more money to continue to keep the government spending money. Because we don't raise enough money in taxes to allow us to spend the money on services that we've agreed to do. And the agreement unkind says that we will not continue to increase spending in areas outside of the military. Right, except for a few percentage points in the future, on non government, non military services. That's all well and good. But there's a few things I wanted to talk about this particular agreement. The first is, oh, do I smell bacon? Boy, is there some pork in this agreement, not the least of which is that Mr. McCarthy has dialed into here, a pipeline, a pipeline that he has been trying to get done for some time for his district, for his area. So there is an actual natural gas pipeline that will be done for his particular area where he is where he represents various people. There is also a study that will be done for artificial intelligence, to be used to permit certain environmental policies. So to review permits, and to approve them to see if it can be used for other government services to eliminate human beings. Depending on where you sit, it could be good, right? taking people out of the jobs can be bad, because you know, Skynet, humans living in caves, waiting for Arnold to come kill us all. But whatever. There's all sorts of things that can be done here. And it's going to have to go through the Rules Committee, where there are a number of Republicans that were put on this committee specifically before, McCarthy could be given the speaker seat exactly for situations like this, because they were very, very concerned that he would fold to the more liberal types. And they're not having it. So there are some very hardcore right wing conservatives who are going to do everything they can to make sure this doesn't go forward until they get exactly what they want. This is not done duck, we might be celebrating a little bit too soon. And we have till June 6, June 6, and then the government could have some real problems refunding itself. And that's another topic for another day. But I think we might be celebrating a little bit too soon. But one of the things that we all ought to be doing is taking a look at things that are in this bill that have nothing to do with us raising our own credit card limit. And that's the port that's involved in it. For those of you that are just regular voters like me, boy, is there some eye opening interesting stuff that happens to be inside of it.
Doug Draper 13:26
Yeah, I think that last comment, Pete just nails that is that, you know, the the top line and what makes the headline is the debt ceiling. But but really, it's another way for politicians to position what they want, that has nothing to do with the intended discussion at the table, which you just called out a few a few of them. It's, it's crazy. It's baffling to me. And it just Well, I mean to say that it's not baffling to me. It's disappointing that everything that comes through is all about the pork belly spent, you know, what, what can we do the fat pork to get through what our agenda is? And, you know, we're at the precipice of this chaos on June 6, and it's still happening, right?
Pete Mento 14:09
Yeah, this is another one Doug where you and I talk a lot and can talk a lot about if we could just record the show before the show. The things that we said today about about the debt ceiling, this would have been another one that would certainly get the show taken off the air but boy, was it some fun stuff that we got
Doug Draper 14:27
one of these days, Keenan is gonna be shaking his head. He's gonna be shaking his head and his finger or elbows gonna hit the record button. And then we're done.
Pete Mento 14:36
Like, oh my god, like,
Doug Draper 14:39
All right, so that takes us through our next phase of the show, which is halftime brought to you by CAP logistics. Please visit their website and their services. For logistics and transportation needs. We wouldn't be here without them. So Pete let it rip man. I like your halftime go for halftime
Pete Mento 14:58
halftime so um Doug and I have had many spirited conversations about his complete lack of taste and film. You know, he does like some great movies, but he's just not a movie guy like our movie guy, and I love movies. I have an enormous television, where I do watch movies at home, but it's just not the same for me. I love going to movies at the movie theater. I like sort of the new style movie theaters where I can recline my seat back. Maybe I can sit in those big loungers, and I can get a 700 ounce Diet Coke and some of that some of those those big thing of popcorn, and sit there and just be drowned in sound. And video, just wow. I love that. Absolutely love that. And then going with my daughter to see these Marvel movies and fantasy movies and stuff and just just be blown away by it. I love it over the course the last couple of weeks because it was Memorial Day weekend. A lot of great films have come out. And also there's a lot of other great ones like Indiana Jones comes out soon coming down the Joan, which I'm looking forward to. But a lot of great films have come out like Guardians of the Galaxy, which I saw was my daughter, which we loved. I'm sure Doug doesn't even know what the hell I'm talking about Kompakt movie. Of course, the new Spider Man multiverse movies coming out again, Doug, no chance in hell, you'll be seeing that. But I did see two comic comic movies, Canadian movies, which came out one of them from a very wealthy friend of mine who when I knew him was so poor. Back when I was a comedian, none of us had the money. The idea that any of us would be able to make money doing a podcast or or talking on the internet was absurd. I would still be a comedian if that were possibility. But I started machine by Bert kreischer, which was a lot of fun. And I got to see Sebastian s Gallegos new movie about my father, which is also a lot of fun. Neither one of them is going to be winning any Oscars but I wanted to support comedians. And these were clearly films that were that were released for theatrical release to make some money and get the buzz going. So they can be released for streaming so that everybody else can just watch them on TV. God that's beginning to feel like what movies are made for that were with limited exceptions, movies, like Maverick. These these these DC and Marvel movies and Star Wars movies. It just seems like movies now. That kind of given up but they're they're just they make them for the movie theaters for maybe a weekend. Where the hardcore is like me go there and and watch him. And then they're like, yeah, we'll see on Netflix in a couple of weeks. And man, that's really bumming me out. I want people to make movies for the movie theater again, because I enjoy that experience. And I'm thinking they might be given up on me, buddy.
Doug Draper 17:59
Yeah, it's interesting. Yeah, I'm not a big movie going guy, but I would agree. The Maverick my daughter actually went and saw furious acts this weekend, which blew my mind. She said, that's one you got to see in the theater. But, you know, from Jerry Maguire, when? What's the girl's name when she said you had me at hello? What were they? Yes. So whenever you you had me when I was taken, when you were just the beginning of this. Talking about laying back in the seats. I pretty much only listened to half of what you said after that, because I'm picturing you. With your 700 pound Diet Coke and a bag of popcorn leaning so far back, that you're just cleaning your hands of all the butter on your shirt, and you're kind of spilling your drink. And you got shit in your beard. And then you get a movie and it just looks like no had the most amazing time. You're like that
Pete Mento 18:51
guy's hardcore. pre pre Amy dug that was the case but she makes me bring in napkins. All right, all right. Yep. Now also, pre Amy, I would never have brought in a flask of Captain Morgan's to put in my diet coke. But she's also taught me how to do that because she has a big purse. So you know I also might have a cocktail during some of these films as well. There you go. Yeah, yeah, she's the reason I'm not covered in popcorn at these films cleaned up Correct.
Doug Draper 19:21
All right. So they I got to two things for for halftime. They're both really fast. But I just saw this weekend that another company I think the seventh company in existence is now has a trip over a trillion dollar valuation. And shocker, it's in the the AI space and a company that makes chips specifically for the regeneration. It's called and Vidya and as a Nancy V i d ay ay is now a $1 trillion company. Apple's like to seven Microsoft's two, four, Google's 1.5 Amazon's up there. And it got me to thinking that, you know, a million dollars a billion dollars a trillion. These are just numbers that are being pushed out there at some point. I was thinking, what's the next thing after trillion? quadrillion. And it two things one. It wasn't that long ago whenever Austin Powers came out. And Dr. Evil was, you know, talking about $1 million ransom. That was 1997. I looked it up. And people were laughing about how little a million dollars is nowadays, even 25 years ago. It's just comical to some degree that you just have these valuations on companies that a trillion dollars that so the question I have is when you go to a quadrillion is that a trillion trillions or 1000? Trillions? I truly don't know. Do you know?
Pete Mento 20:55
A trillion would be what would be 1000? Billions. So that would be 1000?
Doug Draper 21:01
Trillions? Yeah, It's unfathomable to think that you would have 1000 Trillions and evaluation of a company at that level. But who would ever thought a trillion so my, my point is like, all these numbers are just too, too large to comprehend, right? I mean, if you said Apple was a $900 billion company or a 2.7 trillion, my Alright, well, is the phone work? Can I text my wife when I need to text her? I don't really care what the valuation is. But
Keenan Brugh 21:32
it's just, it's crazy.
Pete Mento 21:34
It's not Yeah, I mean, it's, it's in our lifetime, too. That's, that's the other thing. I I remember playing around with like, the little apple computer at my neighbor's house. And everyone telling me who it's the next big thing. And there's also that line from Forrest Gump, you know, who tend to dam bought us and park stock in an Apple company, we didn't have to worry about a fruit company, we'd have to worry about money anymore. It's that it's that ridiculous that in our lifetime, you could have bought apple stock and not have to worry about money anymore. And that's that's going to be the case of what's the next big thing? Is it? Is it artificial intelligence? Is it? Is it you know, quantum computing? Is it genetic medications? Is it space exploration? What's it going to be? Hello? I don't know. I'm 50 something years old. I'm gonna be dead soon. Elephone now, but it will be there's some 20 year old who's working for some company who's going to crack the code on the next big thing, and it's going to be that quadrillion dollar business man. Yeah. Man, I just don't care enough. Like I get excited when I buy a new pair of UnderArmour sweatpants. So, Dan,
Doug Draper 22:38
you're in the same, the same camp thing. Here's the second thing. This will be real quick. Cash, the Bonita update. It's the end of May, they made a commitment to open by the end of May sometime in May. So we got one day left. We haven't heard anything here in Colorado, but they did release the menu. Pete and you've not been to Casa Bonita. But here's the deal. There's only a very the menu is very small. You're not sitting down and somebody's coming over to take your order. You set up shop and you're walking through there and you get eight choices, right? There's enchiladas there's, there's some beef, chicken and seafood, you gotta throw in a salad. You got to throw in a vegetarian entree and some soap appears and stuff but the menus out you can check it out online. There's only eight items that you can choose from so some people may not realize that you don't sit down and get waited on and here's this big plastic menu like you'd have at a normal Mexican restaurant. You got eight choices and you're gonna be fed them on the way through the line. So anyway, no, no official opening date yet. But the menus out.
Pete Mento 23:44
Doug, if they've made a commitment to make the food any better, are they sticking with the same just trash? Man?
Doug Draper 23:52
They made a big commitment. I don't know the head chef or whatever the moniker is that they give them but the South Park guys said they were going to clean up the food which we'll see that's a bold statement, because if anybody doesn't like it, it will be known for sure. So they say it's going to be better. We'll have to wait and see they only got eight ways to throw in beans rice and cheese. Right. So we'll see how it goes.
Pete Mento 24:17
I'm gonna go in full carbon costume. I'm gonna have on the mirrored sunglasses. Cartman as the sheriff I might even buy a big wheel like it's going to be full respect my authority. When we go it's going to be absolutely awesome. I can't
Doug Draper 24:31
wait. Love it. I love it. All right, well, you're gonna bring us home. So let me jump into my next topic here real quick. And I decided this morning that this is going to be episode number one of analyzing peak season predictions. Right? I saw something pop up on my see the other day about oh my god peak season blah blah blah blah blah. And my take is there will be a blip but it's not going to rebound obviously took COVID levels, and I don't think it's even going to rebound to like 2019 peak season levels for, for a couple of couple of key reasons peak one. Interest rates have been high for a while now. And people as much as they complain about it have kind of figured out how to live within those means, right. And so taking a loan out or going into debt on your credit cards to buy big ticket items, I think people are smart enough and realizing that that's not needed. So there's not going to be a lot of big ticket items that pop up. People forget that the peak season also encompasses back to school. My wife's a first grade teacher, so I stay in the know of, of kind of the academic scene, at least for elementary school. And the shopping and the chaos is not the way it used to be. Right. I mean, COVID you approach school, not so much Elementary, but when you get in the middle school in high school, they push isn't quite there to go to the store and get your notebooks and your pencils and your new outfits and other things that come across with that. Will it be there? Yeah. Is it ever going to come back to the levels when you were you and I were going through those formidable years and spending tons of money? It's not going to happen. And the last thing, Pete and I'll get your read on this. There will be purchase orders made. It will just be smaller. I've seen that personally with some of the accounts in the warehousing business, hey, we're bringing in it but we're 20 to 30% less than what we brought in last year, because we still got 2022 stuff, we got to push out the door. So it's not going to be a major blip. That could change. But that's my gut feeling for right now. Episode one peak season predictions, it will be a small bump on the road, but it's not even going to be back to pre COVID levels.
Pete Mento 26:53
Couldn't agree more. Doug, I go on LinkedIn every day, you know, and I catch up on stuff and it's just all these all these prognosticator on ocean rates. You're trying so hard to make them interesting. We all know it's like, yeah, they're flat. They're super flat. And here comes peak season and nothing's gonna happen. And they're trying so hard to make them juicy. And I've just really been talking a lot about comedians today that I was in Baltimore once a club 357 And I got to open for this is old, like comedic care of mine back before I got like super filthy dirty in that scene was Kevin meany. And he had, he had like his catchphrase where he'd say, uh, you're gonna see this, like, I just don't care, anything. I don't care. I don't care. He does not care. He does not care. And I'm reading all of these prognosticators and like, I don't care. You can try all you want to make me care. I don't care anymore. I just I don't care about ocean reach right now. Because there is nothing that's happening economically in the world right now. To impact what's going on? I don't care. I don't care. Here's one great way to prove to me that nothing impactful is going to happen. Ready? Has anyone seen any real attempt by retailers to liquidate stock? At a target at a Walmart at a JC Penney, has there been an extra Amazon de prime date? No, no one's trying. You know, I, because people in consumer confidence is exactly where it is. And they're making excellent margins on Super inflated prices. So they're just hold it out. Because everybody's everybody's corporate earnings are doing just fine. So they're not trying to liquidate things. So who's getting screwed right now? Chinese manufacturers? Yeah, that's where the problem is. So they're not purchasing from overseas. So that's going to continue to put deflationary pressure on ocean rates. I don't care, I don't care. You just can't. You just can't. You can try to make free rates interesting to me all you want. And now that passenger aircrafts are getting filled to the gills, they're actually doing more flights and people are traveling more this summer. Guess that's going to do air freight rates. Those are gonna go down too. Because no one's moving air freight. So that's actually going to start to go down as well. I'm telling you, dude, it's gonna be a tough, tough summer. In the words of Bananarama dud, it's going to be a cruel, cruel Summer. Summer.
Doug Draper 29:38
Awesome. I love that Bananarama haven't heard that name in year but I I remember it was three three girls or two girls and Troy Tria
Pete Mento 29:47
as a trio of attractive young ladies that I will never be able to erase from my memory. Yes. And man in the 1980s Never gonna happen, Doug.
Doug Draper 29:57
Yeah, I think that's a good pivot away from that. Topic and let you jump into your final one.
Pete Mento 30:02
Well, my final this has something to do with air freight. So the the thing that I've been finding a bit interesting and fascinating is the the addition of, of, I guess you call it asset based air freight surfaces by what had normally been companies that would do anything to not be engaged in asset based regular air services. It's quite common for a freight forwarder to do leases. And to do, I guess, you you consider it, you know, doing that lease on a spot basis, you know, if they had to, but certainly the idea of of having regular service was not normal. But in the news recently, there's been a lot of hullabaloo about two particular companies DSV and Kuta. Naugle having a regular service from Asia into the United States, and doing it in what you had talked about, for a long time, into what would be, I guess, considered be tier airports. So for for DSP, it's happening in Arizona, in Mesa, Arizona, outside of Phoenix, and for cooter Naugle in the mobile area. So that would be a subset of Atlanta, the Atlanta area, Atlanta being one of the biggest hubs in North America, but also being historically extremely congested. But a massively important area for automotive manufacturing. For EVs, the same for Arizona. So you've got Reno there for Tesla, you have all these things that are happening out there. And then for South Carolina, and for Alabama, for Mercedes Benz for now, the new scout, which is a pretty awesome looking car, if you haven't seen it, that Volkswagen is doing like field international Scout, they're doing an electric version of it, it looks awesome, by the way. So both of these companies are doing that. And they're gonna have a regular service with leased aircraft. 747 is I think, going back and forth from Asia, and then continuing routes. For Global Services, DSP is going to be going to South America, and then heading their way back up to Asia. So it's a regular routed service, could an uncle coming from Asia, into the United States and back. So these are two companies that are generally an asset light company don't like to really get into that service, that are making the investment because they see it as necessity in the future. They're not ups, certainly not FedEx, but they see that hole in the market, they see an area where they can make a tremendous amount of profit. And they need the regularity in order to service that growing place. That growing market and they're getting their foot in the water. So be fun one to watch duck.
Doug Draper 32:46
Yeah. Yeah, initially, I guess not even initially, but it just be careful. Be careful, right. And then I started thinking while you were talking just now is that maybe, first of all, the leadership in these organizations aren't stupid, they have developed successful operations. And so maybe they are predicting the way companies are going to be writing purchase orders to say, You know what, I don't want all my money tied up in a in all my inventory that's on a boat that is coming into a congested port with all the problems that we've spoken about. So maybe I get some Uber direct flights into key markets that I can dump them into an infrastructure that already exists like Atlanta. And customers will pay a little bit more without having to had so much inventory tied up or money tied up in their inventory, and just saturate the market and just pump it a little bit at a time versus this massive 50 Ocean containers on a bill of lading, where all their crap just sits in a warehouse. So maybe they are angling for the new way. Companies will be managing purchase orders a little bit at a time, get it into the market as fast as possible. And have people buy it as quick as possible. So their money's not tied up. So anyway, I was just thinking about that when you were recapping your topic.
Pete Mento 34:10
I think it has a lot to do with avoiding congestion. I think it has led to the 14th lax and avoiding Atlanta. And it reminds me of back when I first started in this cookie business, and I was at panel Pina in Boston, and they started their own direct air service into Bradley into Hartford for IBM. And IBM started making laptops back in 1999. And they had their own direct air service coming into their for for basically the same reasons. Back then it was for semiconductors and laptop parts. And this is really for electric vehicles and those two particular areas where those are being made and for avoiding the congestion of JFK and and all that so this is going to be an I wonder if other Companies will follow. I wonder if other companies will follow but it's the smaller airports that make it so interesting to me and, and being able to avoid California basically. And being able to avoid Atlanta. I guess we'll see how that goes, brother. Yeah, yeah.
Doug Draper 35:17
Well, I think that's gonna wrap us up for this week's edition of global trade this week. I think we've covered transportation, international trade, some domestic you and I have complained about all kinds of different stuff. I don't think I have to say Get off my yard yet, Pete, but maybe I will in a LinkedIn post.
Pete Mento 35:35
No, but we checked the boxes. We had a beard. We didn't make fun of Kenyans hair and beard, though. Have to get that next week.
Doug Draper 35:44
Yeah, yeah, that's true. We've checked all the boxes, except for that one, a slight mentioned because you just did that. So we're kind of almost there. But we'll have to do that next week when we come back and give you our pontifications and our perspective on global trade, international transportation, logistics, the whole nine yards. So thank you all for listening to us. Thank you cap logistics for helping put this show together. And Pete, I will catch you in seven days from today.
Pete Mento 36:14
Alright, see you next week, buddy. Thanks, everyone. Take care
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