Saturday, February 14, 2009

"Money stops flowing; freight stops going"

Ladies and Gentlemen:

The David Hendricks Story....

Adapted from this source: San Antonio EXPRESS - NEWS, Wednesday, February 11, 2008. BUSINESS Section.

"Money and freight have something in common.

"When one slows down, so does the other.

"Money stopped moving first when this recession started 14 months ago as the credit system froze.

"When people stop spending and investing, stores stop selling as much and industrial production is curtailed.

"Photos are being circulated by e - mail of Singapore's harbor, full of anchored boats with nothing to carry.

"Some ships even are being used more for storage than conveyance.

"Oil tankers are going around in circles in the open sea, waiting for oil prices to rise.

"Freight volumes on U.S. trucks and trains have fallen off the charts."

truck tonnage index fell 11.1 percent in December

"The truck tonnage index maintained by the American Trucking Association fell 11.1 percent in December, the biggest one - month drop since April 1994, when many truck drivers went on strike.

"Truck volumes have sunk back to their 2000 levels.

"[A]ssociation Chief Economist Bob Costello said, Motor carrier freight is a reflection of the tangible goods economy, and December's numbers leave no doubt that the United States is in the worst recession in decades.

"Rail freight fell, too, by 14.2 percent in December from the same month in 2007...."

A good read!


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