Gross domestic product expanded at a 2.6 percent annual pace after the third quarter's spectacular 5 percent rate, the Commerce Department said in its first GDP snapshot on Friday. Economists had expected the economy to expand at a 3 percent rate in the fourth quarter. U.S. consumer sentiment rose in January to its highest level in 11 years on better job and wage prospects, a survey released on Friday showed. The Thomson Reuters/University of Michigan's final January reading on the overall index on consumer sentiment came in at 98.1, its best showing on a final basis since January 2004 and the latest in a string of increases since August.
Quotable"Write down the revelation and make it plain of tablets so that a herald may run with it."
- Habakkuk 607 B.C.
Ramp/Dock Report: February 2015
The Pacific Maritime Association said last week that a "tentative agreement was reached on the chassis topic" with the International Longshore and Warehouse Union during contract talks. "We are hopeful that this will allow us to move toward conclusion of an agreement in the near term," said PMA spokesman Wade Gates. The jurisdiction over chassis maintenance and repair work has been a major issue in the contract talks in recent weeks.
Currently for many companies, another form of innovation lies in supply chain network design. Increasingly, companies are choosing Mexico as a manufacturing hub. Mexico has more free trade agreements than any other country, a low-cost position, and immediate proximity to the US. 40% of survey respondents have already moved some operations to Mexico. 55% moved there from the US; 36% from China. Key factors were reduced transport time, no port delays and proximity to sources for travelling team members. Absolute Intermodal serves Chihuahua, Sonora and Sinaloa, Mexico with drayage from both the ports of LA/LGB and the rail ramps of El Paso, Tucson, and Phoenix.
Lessons from the Past
Jonathan Cahn, in his book "Harbinger", has demonstrated that almost all of the major financial downturns in U.S. history are very closely tied to a seven year pattern that we find in the Bible known as "the Shemitah". (In the Bible, the people of Israel were commanded to let the land lie fallow every seven years. There would be no sowing and no reaping, and this is something that God took very seriously. In fact, the failure to observe these Sabbath years was one of the main reasons cited in the Scriptures for why the Jewish people were exiled to Babylon in 586 BC).
This seven year cycle of economic challenges has repeatedly appeared in the history of the U.S. In 1931, a few days after the end of the Shemitah year, Wall Street suffered the greatest month-long percentage drop in its history! Again in 1987 in less than a month after the end of the Shemitah, we suffered a stock decline known as "Black Monday". On September 29, 2001 the stock market plummeted 777 points, which remains the one day loss record for the Dow! Seven years later in September 2008, the economy and stock market entered what was called the "Great Recession"! Following this logic, Cahn asserts that this September or later, may be worth watching! How does that saying go, "those that do not learn from history are doomed to repeat it"! Now you know "the rest of the story".