Oil is making millionaires in North Dakota
June 30, 2008
By JAMES MacPHERSON, Associated Press Writer
BEULAH, N.D. - Oscar Stohler was raised in a sod house in western North Dakota and ranched there for nearly seven decades. He never gave much thought to what lay below the grass that fattened his cattle.
When oilmen wanted to drill there last year, Stohler, 83, doubted oil would be found two miles underground on his property. He even joked about it.
“I told them if they hit oil, I was going to buy a Cadillac convertible and put those big horns on the front and wear a 10-gallon hat,” Stohler recalled.
He still drives his old pickup and wears a mesh farm cap — but it’s by choice.
Read more of: Oil is making millionaires in North Dakota
(AP Photo/James MacPherson)
Container Shortage Puts U.S. Export Boom in a Box
June 24, 2008
By TIMOTHY AEPPEL
Many U.S. companies hoping to profit from surging exports created by the weak dollar are facing an unexpected hurdle: There aren’t enough of the big, metal shipping containers that help form the backbone of the global economy.
The shortage is threatening to limit the benefits U.S. producers can reap from one of the few bright spots in an otherwise troubled economy. While housing and financial markets have slumped, many companies have seen a rise in their export business, helping offset the domestic slump and lessening what would have already been a far more painful downturn.
The container shortage is forcing U.S. businesses to rethink export strategies. Many shipping lines have shifted container capacity away from the U.S.
Finding enough of the big metal boxes used to be a cinch, because the nation’s massive hunger for imports meant they were constantly arriving and stacking up from Long Beach, Calif., to Long Island, N.Y. Shipping companies typically scoured the country for anyone willing to fill outgoing boxes. But with the slump in the value of the dollar making U.S. goods more attractive to foreign buyers and many overseas economies continuing to hum, the tide has shifted in recent months. Trade figures being released Thursday are expected by many economists to show further growth in exports.
Shipping containers — and the way they’re handled — reflect how the U.S. interacts with the global economy, which is one reason the problem has emerged now. For years, the U.S. crafted a trading system that was designed to pull in masses of imported consumers goods such as sneakers and VCRs as efficiently as possible from countries like China. Far less was expected to flow the other way.
What has happened now has thrown a wrench into the works. Cutbacks by U.S. consumers have slowed the growth of imports, while the weak dollar is making the U.S. into an export machine. Meanwhile, the places where most of these exports are originating are far from where boxes are being unpacked and soaring energy costs make it too costly to just load them on trucks and move them around.
“There are some places, particularly in the Midwest, where there’s a complete lack of containers,” says Philip Damas, the head of container research at Drewry Shipping Consultants in London.
And it’s not just boxes that are in short supply. Maersk Inc., the U.S. subsidiary of A.P. Moller-Maersk Group, the Danish container shipping company, notes a shortage of chassis, which are sets of wheels and frames on container-carrying trucks. Without enough chassis to deliver containers, it doesn’t matter how many are piled up in a port, says a company spokeswoman. Yet another problem: Many shipping lines, including Maersk, have shifted container capacity away from the U.S., just when U.S. producers need them most.
This has meant lost orders, delays, or a scramble for alternatives, such as costlier air freight. A Wisconsin producer of riding lawn mowers expects fewer “opportunistic sales” to European customers in coming months, because he can’t book containers on a few days’ notice — three weeks are needed — while a South Carolina construction-machine maker says the shortage has delayed shipments to Australia and Europe. McCain International, the big french-fry company with operations in the U.S. and Canada, says it can’t get enough refrigerated containers. Among the hardest hit are companies that shippers counted on to fill otherwise empty outbound ships: scrap metal and paper concerns.
“This is a huge problem for us and it keeps getting worse,” says Shailesh Vyas, president of Bay Bridge Enterprises LLC, a scrap-metal processor in Chesapeake, Va. Mr. Vyas said shipping lines used to call on him to fill outbound 40-foot containers with scrap metal. But shippers no longer want low-value scrap when they can fill ships with higher-value goods, such as grain, chemicals and machinery.
As recently as August, Mr. Vyas was sending up to 1,000 containers a month to customers in India, Bangladesh and Pakistan, which melt scrap to make new steel products. Now, he’s lucky to get 300 or 400 boxes, he says. “What’s really frustrating is that, today, I could be moving 2,000 boxes a month without any problem, but I can’t get the boxes.”
Analysts say shipping costs are rising, too. Mr. Damas, the London-based consultant, says the cost of shipping a 40-foot container from the West Coast to China is now $1,500, up at least 20% in the past year. In many cases, boxes that previously would be sent to inland locations never leave the coast.
The problem surfaced about six months ago and can be traced to a confluence of factors, beyond the slump in the dollar. For one, the global commodity boom has increased the cost of shipping items by bulk, which in turn has pushed more goods into containers.
It doesn’t help that containers don’t tend to flow to places that make most U.S. exports. More imports to the U.S. are consumer goods, which are often unloaded near retailers and warehouses in large cities, including Los Angeles, Chicago, and New York. In the case of Chicago, many containers come off ships from Asia and onto trains destined for “inland” destinations. But U.S. commodity exports, such as cotton and corn, are grown far from those hubs.
The shortage of boxes is forcing some businesses to rethink how they structure operations. Dan Ariens, chief executive of Ariens Co., a Brillion, Wis., maker of lawn mowers and snowblowers, spent the last few years perfecting just-in-time production, which allowed him to sharply reduce inventories in warehouses.
“We’ve had to adapt to work with longer lead times, which means trying to get better vision from customers,” says Mr. Ariens. Even then, he figures he’ll lose some business because of the dearth of containers. For instance, an early spring in Europe might prompt a surge of lawn-mower orders, but he won’t be able to get his products there quickly enough. Air freight is too expensive to even consider, he notes.
Manufacturers like Ariens work closely with freight forwarders, which help companies move goods around the world. But Tim Schwerzler, vice president of sales at Harbour Freight, the Batavia, Ill.-based forwarder who works with Ariens, says many manufacturers, even huge companies with long-standing relationships with the shipping lines, are facing similar problems.
“A lot of companies have product sold, but can’t get the product out — it’s tying up a lot of inventory,” says Mr. Schwerzler. “Even if you get containers, you find more people fighting for space on the ships.”
Sometimes, the shortage can torpedo an entire transaction. One of his customers wanted to buy ice-cream sandwiches from a company with factories in the upper Midwest to ship to the Caribbean, but couldn’t get a steady flow of refrigerated containers to the factory. Shipping ice cream by truck to a distant port was too costly and fraught with risk of spoilage.
Analysts say that barring a global slowdown that put the brakes on U.S. exports, the problem will dog exporters at least through the end of next year.
Princess of the Stars sinks
June 23, 2008
Cebu City, Philippines - Battling choppy waves, four men were able to swim or ride a lifeboat to the coast a kilometer away.
But there were no signs of life on board the MV Princess of the Stars on Sunday when rescuers reached the site where the vessel capsized off Sibuyan Island, Romblon province.
The Sulpicio Lines vessel had 845 people on board when it sailed from Manila for Cebu City and encountered “engine trouble” in the middle of typhoon Frank Saturday morning.
Read more: Princess of the Stars sinks
We, at Zugbu.com extend our symphaties to all who have lost their loved ones. In this connection, we expect more delays with the delivery of the balikbayan boxes.
May Shipment Status
June 19, 2008
With the congestion experienced in Kaohsiung, Taiwan, there will be a week delay for the arrival of the container from Chicago, U.S.A.
The container was loaded on May 19 and was shipped on May 21, 2008.
We expect the shipment to arrive on June 21, 2008 if prevailing conditions are favorable. May this guide all as to the expected delivery date.
Thank you.
Zugbu
“Zugbu presents … Christmas in July”
June 15, 2008
What can be more exciting than celebrating the spirit of Christmas during the warm and beautiful season of summer where shopping for “nanay, ate, manang, tiya, lolo, mga kaibigan ug mga silingan,” will be more enjoyable in your most comfortable summer outfit! After all, the gift of giving and sharing our bountiful blessings is an everyday thing!
Zugbu has been blessed to be able to serve its customers for four years now - picking up, strapping, loading and delivering balikbayan boxes to the Philippines. Despite its success, it remains relentless in staying at the top of its game. From humble beginnings, Zugbu now enjoys a good reputation and is now a respected name in the industry. Zugbu has grown and expanded to nearby states such as Indiana, Michigan, Ohio, Tennessee, Kentucky, Missouri, Wisconsin through word of mouth - the most effective means to reach its market, capturing one shipper at a time. Zugbu humbly acknowledges that it owes its success to its clients who never fail to trust Zugbu with their balikbayan boxes and have become the ambassadors for Zugbu!
While others choose to focus on negative advertising, Zugbu believes giving focus to providing its customers excellent service. In its effort to further provide the best customer service, Zugbu’s website www.zugbu.com is officially being launched on June 15, 2008, highlighting “Track and Trace” to further this goal. Track and Trace is an e-ticket system with a unique e-ticket number that shippers can use when viewing the status of their shipments or doing follow-ups. The system can channel e-tickets submitted to Zugbu’s Luzon, Visayas and Mindanao representatives. Proof of Delivery or POD such as pictures and delivery receipts will be available upon request and are available for download after delivery. The Track and Trace e-ticket system hopes to answer all of the shipper’s inquiries regarding the status of their shipments within 24 hours. You can find the link at this url: http://zugbu.com/helpdesk/
Despite the skyrocketing gas prices that has drastically affected the cost of shipping, Zugbu continues to maintain its reasonable price, as well as its reliable service and firmly believes that good service cannot be compromised with low prices. It stands firm in its belief that peace of mind is priceless.
One of Zugbu’s unique offerings is the personal touch of family involvement here and in the Philippines where everyone in the company takes ownership of its responsibility in running the business. Zugbu takes pride in the fact that its services are truly company-run, and not coursed through agents, and that Zugbu’s own personnel from Luzon to Mindanao are handling its deliveries to the entire Philippines. Its president and CEO, Linda Mendez, who hails from Surigao City in Mindanao, is happy and thankful that through Zugbu, she has been able to provide employment to many kababayans both here in the US and in the Philippines. Linda and her husband Sergio, run the company like a tight ship and they are both amazed that they are able to do this while maintaining full time jobs, she in international logistics and while he works for a top manufacturing corporation. Because of her job, Linda remains informed in advance on what is going in the shipping industry, such as the container shortage recently experienced by the U.S. This gives her and the company a distinct advantage over the others in the balikbayan box delivery business.
Above all, the Zugbu team believes that Zugbu’s strength lies mainly on their complete trust in God, their ultimate Source of strength. “At any moment when we are faced with big challenges, we always anchor on God’s promise, Zugbu’s life verse - Proverbs 3:5-6 (Trust in the Lord with all your heart and lean not on your own understanding and He will make your path straight),” Linda quotes.
Four years and counting, Zugbu will continue to provide the best customer service in the industry. Armed with support from its loyal customers and agents, the company is fast becoming a household name within the Filipino community in the Midwest. Zugbu will remain grounded in honesty, optimism and goodwill, and with its warm and friendly service, is on its way to being the favorite door-to-door na kargador ng balikbayan box among Filipinos!
On its fourth anniversary and during the launch of its Christmas in July promo, Zugbu enthuses - Mahusay na serbisyo ang alay ng Zugbu sa inyo! Nag Zugbu na ba kayo?
Circle of Giving - AFIRE
June 11, 2008
The Interim Executive Board encourages you to support the fundraising initiatives of UPAAGC and CAAAELII.
The walkers (minimum of 10) joining the UPAAGC “Walk For Education” and raising a minimum of $50 will be able to join CAAAELII’s Building Bridges across Communities fundraiser event.
Details:
1. UPAAGC- WALK FOR EDUCATION =Register online at www.upaagc.org/register.htm or call (312) 857-5857 Maricar Madrid-Crost, Esq. or (773) 848-1201 Vicky Silvano. Registration is $25.00; for students, 12-17 years/60 years and above, $10.00. A minimum pledge of $50.00 per walker is required. Deadline for pledges: June 15. Walk Date:June 21, 7 a.m. at Grant Park, southwest corner of Columbus and Balbo.
2. CAAAELII-Building Bridges across Communities
When: Friday, June 27, 2008; 6pm-10pm ( Doors open at 5:30pm)
Location: St. Augustine College, 1345 W. Argyle St.,Chicago, IL 60640
How the Circle of Giving works: For your $75 investment ($25 registration + $50 minimum pledge) in UPAAGC’s Walk for Education, AFIRE will get back $35. In a quick turn around, AFIRE will subsidize $15 towards CAAAELII’s Building Bridges across Communities entrance ticket of $50. For a minimum of ten walkers AFIRE will allocate $150 from the funds raised earlier (AAI Gala event).
Overall, your $75 investment will help further the cause of education and strengthen diverse voices inter-generational immigrant and refugee communities by building alliances through a transformative process to develop grassroots power that impacts public policy.
Pilipinas Kong Mahal
June 11, 2008
Here’s an interesting post from PinoyCentric.com
One blogger wrote “the poster stirred up very deeply rooted feelings of pride and nationalism.” Manila City Legal Officer Renato de la Cruz thinks otherwise as he ordered their removal “to comply with a constitutional provision prohibiting unnecessary imprints on the flag.”
Still another blogger observed “Pilipinas Kong Mahal - very apt considering the fact that at present lahat ng bagay sa pilipinas ay mahal.”
Whichever side you’re on, happy Independence Day everyone!
Read more: Pilipinas Kong Mahal
