Thursday, November 20, 2008

“The ships keep coming, but there’s nowhere for the cars to go,” ...

“Not far away, metal, cardboard, paper and plastic are piling up in the lot of Corridor Recycling. The company takes in refuse from around the country, then bales it for shipment to China. The cardboard is used to make new boxes while used shrink wrap is turned into shoe soles and insulation for sleeping bags and coats.

For much of this year, the company shipped about 25 containers a day, each filled with 23 tons of refuse to be recycled. But after the Olympics, demand slowed for recycled metal. In October, demand for everything else took a sharp downturn, and for the last two weeks the company has not shipped a single container.

“It just came to a complete stop. Absolutely a stop,” said Gilbert Dodson, the recycling company’s co-owner. “I’ve seen it slow over the last 25 years, but this is the worst,” he said of the current downturn...”

There are stories about ships all over the world stacking up in exporting countries, anchored, and not able to sail because they cannot get letters of credit for the shipments. Hong Kong was mentioned as having rows and rows of loaded but idled ships stuck there.

The same goes for oil tankers, lines of them anchored even though they are full, with no buyers. There has been a screeching halt of shipping worldwide. Products are backing up in Asia.

Many of you have heard about the collapse of the Baltic Dry index, a shipping index for containers. It has fallen from over 11,000 in July to around 800, in only a couple of months!
Ladies, few have a clue how bad this will get...everywhere.

Highly recommended.