Shades and hues
of shipping news,
Will not diffuse
the Shipping cues.
And markets choose
or just refuse
to see the clues,
Of the storm that brews
around The Shipping Blues.
There is even more depressing news about the difficulties in the shipping industry. Even niche ports, such as the Port of Hueneme, are being affected by the slowing economy.
The Port of Hueneme, in Ventura County, south of Oxnard, north of Los Angeles lost $1.3 million during their fiscal year ended June 30. The profit at the port was $1 million the previous year. The port relies mostly on automobiles and produce at their 130-acre facility.
Ronald D. white, author of the informative article about the problems at the largest ports in the country, has also written about the difficulties at Port Hueneme, “Tiny Port Hueneme is hit by perfect storm.”
The perfect storm White describes is further evidence of the head-winds confronting a perceived recovery.
Despite the need to rebuild inventories the ports have not seen the benefits. The ports are clearly a leading indicator of the economy, and judging from the current traffic, the future doesn’t look too promising.
The ports are indicating that there is little demand for either imports or exports. Demand is down because the consumer’s purchase power has declined drastically. If the consumer is not able to buy the products there is no need to restock inventories.
Until the consumer returns to spending; which cannot be accomplished without jobs, rising salaries, and a reduction in debt, we can expect a slow holiday season.
Maybe then we will see a ‘real’ decline in the overheated stock markets.