Saturday, April 10, 2010

Right in time for that yuan appreciation everyone is calling for

The timing is exquisite.  
A small news item out there is that a firm is planning to land one flight per week of air cargo here from Shanghai and Vietnam. 

So I tried to look up the oldest reference I can find for "Air cargo" here.  In the PG there is this article from 2002 which says there isn't just one, but two new air cargo facilities to be built out there imminently.  Plus a few other contemporaneous economic prognostications of note in passing... and remember, this was well past the point USAir was showing an erratic heartbeat... this wasn't from the mid 90s groupthink years when people really believed USAir and the airport would be the economic engine to replace all of steel.    So much so that for years after that I would get questions predicated on some assumption that the loss of jobs at USAirways was equivalent to the loss of steel jobs here.   I'd usually say something like: sure, just add a zero.  Can't lose what you never had.


Blogger n'at said...

Add in the report of their first trade deficit in a few years, and it makes for an interesting debate on the valuation of the yuan. However, WSJ remarks that the deficit is mainly from trade with neighboring countries - our Mao bobbleheads aren't selling as well as their American flags.

Saturday, April 10, 2010 12:08:00 PM  
Blogger Vannevar said...

Here's the way this hopefully works, from somebody with zero insider knowledge.

It starts off with a full 747 coming in once a week from Hong Kong, and a score of trucks taking the cargo and spreading out within a 300-mile radius. Then they might add the Shanghai and VietNam flights, which would probably result in forty trucks spreading out over the 300-mile circle. So that's all good.

What's really exciting, if we get there, is there's an empty 747 flying each week back to HongKong, Shanghai, and Vietnam, and forty empty trucks making return trips from within that circle.

Something there is that doesn't love an empty 747 or an empty truck. The real potential excitement is that other businesses may find it compelling to fill those empty trucks and airplanes.

This is all three levels of conditional conjecture - that is, (might be)^3 - but it's good news, and my compliments to those who've worked for years to bring it to this point.

Saturday, April 10, 2010 8:56:00 PM  
Blogger C. Briem said...

I hate to point out that lots (most?) of shipping containers, and ships, are returned very empty to Asia from the US.  Those that are not used for other purposes that is.

Now if we get even some small percentage of Chinese to become Steelers fans then maybe the plane could be filled with stuff from Albert's Gifts or something like that...

well, except that I imagine of their stuff is actually coming in on the plane in the first place.

Saturday, April 10, 2010 11:22:00 PM  

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