Global Trade This Week – October 4th, 2022
-
Keenan Brugh 0:00
You're watching Global Trade This Week with Pete Mento and Doug Draper.
Doug Draper 0:10
And welcome ev erybody to another edition of Global Trade This Week, brought to you by CAP Logistics, please visit our site at caplogistics.com for all your transportation needs. And I'm stoked about this episode. Pete. I'm looking forward to it. But before we jump into that, let me back up. I'm Doug Draper. I'm your host on the inner Mountain West. Pete loves it when I use that terminology and, and piece dropping dimes out there in New Hampshire. Pete, how's it going, my friend?
Pete Mento 0:41
It's going great, but I'm still positive. That Intermountain West is something that you and Keenan made up and even made up a Wikipedia page for it. Just to throw me off. I don't think it's real. I don't think it's real but yeah, yeah. Dougie, Dougie fresh in the get fresh crew. i i Do you even know who that is? Doug. Of course, I
Doug Draper 1:08
know who that is. Yes. Dougie fresh
Pete Mento 1:10
the show. Yeah. I have a buddy Hector. Dougie fresh did a cameo for him for his birthday. And it was awesome. I sent Hector a cameo from an old school rapper every year for his birthday. Dougie fresh. I did. Why isn't it coming to therapy from Eric B. And Rakim? You know, I mean, I've I absolutely love doing it. They're awesome. Have you ever said the CAMEO to somebody, Doug?
Doug Draper 1:40
No, but I know what you're talking about. It's funny to see what the prices are. And you're like, That guy's career has come and gone. Now ladies, correct curves over
Pete Mento 1:50
the best ones I do. So that there's two I used to do a lot of them but the there's there's a couple of them, actually. So I have the the meanest fantasy football league. I think I've talked about it before. It's mostly 14 folks and people I played rugby with. There's no money, but we are often Doug awful to each other so that that TV show The league has nothing on us. We are absolutely terrible to each other. And I have had celebrities. So one of the guys I play against he works for expediter as his favorite quarterback from the Cowboys. I actually had a cameo of his favorite quarterback from the Cowboys talking about how much he sucks at fantasy football. This year, I had a an adult star. talk smack about how I'm going to kick everybody's butt this year. So that's what I've done. The other ones I love at Christmas time. I have a member of the Boston Bruins do a shout out to all my buddies. It's always a bruiser. It's always some Enforcer. And then my my nephew Trevor, who is a gifted baseball player for his birthday. You know, for just the points of I always get someone from the Boston Red Sox to send them a message which I I get a kick out of so I love cameo. I've had for Mrs. Trade geek. I've had people from like the Real Housewives of New York do shout outs to her and stuff. You know, I'm I think it's great. You know, I think we should do cameos duck. I think that there should be global trade this week. Shout outs that we do for birthdays and bar mitzvahs. high school graduations, you know, I don't know what, what, five bucks you think? Seven Bucks?
Doug Draper 3:37
Yeah, two for one. I think 750 For one, maybe like 14 or 13 bucks. I'm not all in. We just got to get keynotes depressing.
Pete Mento 3:45
I bet Keenan would make more money. I bet that if Keenan did them, he'd probably make more money than ours. I have a feeling it's depressing, man.
Doug Draper 3:54
Yeah, so a quick quick comment and we'll get into our show here about old school rappers. So we didn't make mentioned last week but Coolio passed away?
Pete Mento 4:04
Yes, he did. Yep. Here's
Doug Draper 4:06
when I came out to Denver didn't know what the hell I was gonna do not been sucked into the mafia that we refer to as supply chain logistics quite yet. I worked at a liquor store at night. I had two suits, and I just rotated I'm trying to find a job. Anyway, Julio came in to the liquor store. And he was he had an entourage he was doing a concert down the street. And he came up and he said, he said he'd probably had some slightly derogatory comment to me and he said, I need a bottle a bumpy face and a pack of what I am cool. And I was like that's that's a pretty that's a pretty ballsy statement right there and he had his whole crew and his hair was crazy. And I had him sign I didn't have anything for him to sign except a receipt so I'm pushing the register trying to and as it seems that be cruel, Coolio and I had about a year I love where it is. It's lost now, but I'll take a bottle of bumpy face, which obviously a secret Gen. Pack of cool cigarettes. What he is cool.
Pete Mento 5:13
Cool. Yeah, that's fantastic. Doug, do you have you had a running with Coolio? That's great. And he said derogatory things to you, Doug. I mean, that's what you you save the encounter. I think that's wonderful. Yeah,
Doug Draper 5:27
I did. Thank you for that. So and that's, I don't want to transition into our actual show topics. But maybe we just jump over and have you kick us off.
Pete Mento 5:39
No rest in peace. Coolio. And with that, you know, Topic number one this week. I'm calling it blink sailing Palooza, if you will, with the, with the ocean freight world kind of pulling the reins in on our consumption all over the world, as people are realizing, as we've been saying for months now, Doug, that warehouses are full of crap that nobody wants to buy. And as people are making this decision that maybe they don't want to buy things left and right. The ocean carriers are doing what they do, which is constraining inbound volume, smart decision. And by doing so, hopefully, you know the law of supply and demand keeping rates at a reasonable level so that they can return some kind of positive, some positive returns for their shareholders. Now it's not having the immediate effect that they hoped they would prices are still plummeting all over the place. And it's maddening to watch. But there's a lot of interesting things that are happening. Along with that West Coast rates are ridiculously low right now, duck. So if you look at the way the charts are going, they're just dipping, I mean, they are just throwing up on themselves. And what's crazy is these nvoccs These bcos they overbought West Coast rates. So people read mentioned again and again over the course of the past 24 months, they bought long term contracts. So they bought contracts for this year. And they bought contracts for next year. And many of them bought contracts for two years ago this year and next year, and the West Coast emits where it was at. But because of this port strike, pending port strike possible port strike, which hopefully never happens in the renegotiations people are flooding containers into the west east coast. And now the East Coast has surpassed the West Coast, clutches pearls as the dominant port for the US, New York, New York, New Jersey is now the largest port in America. And Savannah is picking up their buddy like Savannah is it's it's grown, it's crazy as far as the volume goes there, which means that the rates on the West Coast are gonna go down even more. So what we're seeing now is more blank sailings into the East Coast, trying to ratchet up those rates to make even more money as volume goes down. And that continued correction, if you will. So I think our prediction that the rates will probably stabilize at some point around Lunar New Year is probably going to be dead on probably to see another drop again after that. And then a return to normalcy in 2023 So that's where I'm at Doug.
Doug Draper 8:27
Yeah, I love it. Hey, whenever I was looking at this topic, you know, first people are like, this is unfair, and how can they do this and they're out to make money and blah, blah, blah, blah. And then literally a day ago, it could have been two days ago OPEC came out and basically said yeah, we are going to we're going to we're going to plan oil production cuts to prop up prices. And they literally say that we're going to do the equivalent of our blank sailings because we need to prop up prices they're so just brazen about it and OPEC shipping industry the whole nine yards the common theme not only they got you know and brass you know what, but they're not gonna they're not controlled by the US like the US cannot do anything. OPEC is Middle East dominated and so it sucks. People complain all they want but it's going to happen just like OPEC controls the flow of oil. I think there's going to be a lot of manipulation just like you said in the in the ocean container rights to stabilize.
Pete Mento 9:38
Doug, you know, I think we've said it again and again. We want ocean carriers to make money, want to make money, and by making money allows them to buy more environmentally sound vessels allows them to invest in themselves and allows them to make safer platforms for mariners to work on. We don't want them to do as gouges but again, When, when capacity was needed, they flooded the market with capacity they put every single ship they could find out there. And the market still said not enough. So it's not like they could just manifest chips out of nowhere. And the market went crazy. I mean, that's something that people I don't think realizes, when we had those 25,000. And I remember those conversations, you want, how much what now $25,000, I remember someone saying that 25 grand for a 40 footer, from a Chinese base port to, to Long Beach. And I just remember thinking the world has gone pear shaped. But it's not like, it's not like, you know, an ocean carrier had a whole bunch of ships that they were, they were hiding, every single keel that they could put on the water was on the water. And that's just where the market was, people were crazy enough to spend that kind of money on it. Well, now that there isn't, they've got to find a way to operate at a profit. So that's going to mean keeping vessels off the water. And you can't, you can't be upset at them for trying to remain profitable. And learning after decades of what didn't work, seeing what does work and trying to be profitable with it. So, you know, I'm not saying that I'm to ocean freight. I'm always going to be team shipper. But I think I'm a lot more sympathetic to what it takes to keep our partners profitable, so that all of us will have ships to put our cargo on.
Doug Draper 11:26
Yeah, good point
Pete Mento 11:27
what you got done.
Doug Draper 11:30
Mind flipping over to the parcel industry. I know I picked on that a little bit last supper with Amazon. But the one thing I saw the other day was UPS announced and all in pricing, structure for parcel. So when they talk about all in it really is all in it's the fuel surcharges, the destination area charges all the other I mean, I think there's a laundry list of like 30 or 40 charges, the only one it doesn't include is, is very large, overweight, and over dimensional shipments, which I get because they're trying to move stuff through their conveyor belt system, which I think is really cool. You know, the simplicity of it. I think people are going to be a little gun shy and a little hesitant because they're like, what's the trick? What's, you know, what, what's going on here? But the concept, especially with small to medium size shippers to say, Listen, just give me a right. I don't know the true final costs, because I don't know exactly where my customers live. Because they're coming to me, I'm not touching them, per se. So my contracted rate of $10 may ultimately turn out to be 1350 14 and a half, maybe 10. So there is a lot of ambiguity out there with what is the true cost. So UPS is offering this to larger clients that have a revenue and a volume commitment, which is great, because they're going to have a guaranteed revenue stream that comes in totally get that and then I think the real beneficiaries are going to be the small to medium size guys that can align with with their shopping cart. So excuse me, the big thing is, if you and I are selling some widget online, and we're using Shopify or other tools, we're a side hustle or small business that's growing. Companies can now align their shopping cart rate to exactly what the rate is going to be that UPS assigns them not like I guess I'll add an extra 10%? Because I don't know. Now I do know through an all end, right. So I like it. The two forward lanes on this one is I don't think FedEx Well, let me say I don't I'm not sure FedEx is going to play and follow along. But I really give ups and kudos for thinking outside of the box. And the only thing that this is going to do is think well, they'll do a lot of things. But the other piece is it's kind of an emotional thing where there's a bridge there bridging a gap between all of these services are just designed and all these surcharges are designed for them to make more money. And why do I got to pay a density surcharge and at the same time, I pay a rule surcharge and blah, blah, blah, blah. So I think it's a little bit of PR and some goodwill. And I really think the small to medium sized customers are going to benefit and I'll give kudos to ups for thinking outside of the box and continually to come to the table with with something a little bit different.
Pete Mento 14:30
Yeah, I'm giving him credit. I would love to have met the people who did the economic study on this to figure out what the number was, you know where they're being profitable. I think this is a great indicator of a coming recession as well. But when you when you see someone who says let's flat rate this, so some more funsies for you. Things that do well in bad economic times, buffets do extremely well. All you can eat right? Things that you buy by the pound, so clothing that you buy by the pound, does extremely well. Ground beef sales go up considerably during during times like this, whenever you begin to see people that shift over, you'll begin to see more happy hours, the special that's on special, you'll see two for one deals, I'm seeing UPS realize that the markets about to shift. So this is going to allow them to get people used to this service, make that move, embrace it, and then allow them to gain some kind of dominance in that particular marketplace, by having people use it. So when you say I'm not sure FedEx will do it. I tend to agree with you, because it doesn't seem like a FedEx move. But I wonder if FedEx isn't going to have a choice. I wonder if people are gonna get so used to this pricing model from ups that they're going to be forced to respond. You know, because of the simplicity of how it's built. It really is. It sounds like it's built for E commerce, right? So that you can put on, you can build it into the price of your product, put it on your website and say if you buy widget X, the total cost will be y. And now I know my profit margin is stable. It's not something I have to worry about. Over the course of a six month period. Yeah,
Doug Draper 16:25
I love it. Exactly it. So all right. Well, this is one of my favorite times in the show is halftime because we kind of get off the rails every once in a while we talk about random stuff that happens to push our buttons in the moment. And the halftime we'll jump in, of course, it's brought to you by CAP logistics. We mentioned that the first of the show. So that being said, Pete rivet dropped me in here I have time.
Pete Mento 16:51
I can ask a question for stuff because I don't know if we've addressed this before. Are you a shopper? Doug? Like are you somebody who, like you enjoy shopping?
Doug Draper 17:01
At times, here's what I don't enjoy shopping was whenever I kind of have some interest, and I'm done shopping, and my wife isn't and I just follow her around and I look at all the other guys are doing the same thing. And I'm like, I'm out of here. I gotta go just stand in the corner or sit down. So yeah, I do like shopping. Except in that instance.
Pete Mento 17:20
I think you and I might share this trait and you can tell me if I'm wrong. I don't think I'm so much a shopper. As I am like a purchaser or a buyer. Like I go into something pretty much already known what I want, like I I go to Dick's and I'm like, I need to go buy a pump for a rugby ball or like, you know, I'm going into the grocery store, I have my list. I'm buying what's on my list and I'm departing. Like I'm not browsing joyfully as I walk through things preparing to buy something I'm not. That, to me seems like an opportunity to be to be separated from my money. And I really don't care for that, you know. So I'm not really a shopper. I'm a buyer, you know, which is why for me buying things online is it's pretty much that works for me. But when I was in Europe with you know, oldest boy and his now fiance and Mrs. Trade geek, I was in hell. For a significant portion of the time the dollar was outrageously strong. So the Euro was in the toilet as was the pound and I spent a lot of time browsing, browsing and leave a ton of browsing in Burberry browsing in Gucci, which for me is pointless, because I don't care. I just don't care. Yeah, like if you want to go to a whiskey store, oh, we can shop. We can shop. Right? But I don't care. But what didn't really get my attention, Doug was when we would go to these high end retail places. A couple of things that happened, there was a line, you could not just walk in, they would say to you, can I get your name and your phone number please. And we'll text you when it's your time to come back for your allotted 30 minutes. Like Say what now it's a yet you and your you know, you and your friend, you and your partner will have a 30 minute time and you're allowed to browse our collection. And we'll text you in about an hour. Wow. You know, and it wasn't just that was a lot of them. It was a lot of them or you can wait in the queue. And when we have an opportunity we're letting people in slowly and the people that were taking your information were thick next gentleman who looked like they may have spent some time in a war like these were These were guys that had seen some stuff you know what I'm saying? And I finally you know at asked some people I said so is this a security concern because of shoplifting? Absolutely. We are limiting the number of people inside of our stores the number of guests that we have in our store, because we have had far too many people Multi smashing grabs Ron, one of the things, and our inventory is just too expensive. And there are too few of us to manage that problem. And he said, Thank you for your concern, get back in line, American. But then you read about it online, there's also an air of exclusivity that comes from it having that opportunity as an individual, to walk around in a less crowded store, really take it in, there are fewer people who are working inside, they can actually spend more time with the consumer, make it feel like a more personal experience. But I look at that. And I think about, you know, the lower rungs of what's happening with commerce today. Every day on Twitter every day on the news, we see people who walk into a retail drugstore. And they know that the limit before you're gonna get hit the shoplifting charges is $900 $600. So they still just under that limit, and they walk out the front door with employees of that police who were told not to stop someone from doing it. And are we going to get to a point where you're going to have appointment shopping to go to CVS? Are we at the point where it's going to become cheaper from an insurance standpoint, to have Whole Foods deliver me my eggs in my milk than it is for me to go there and buy it myself? Because you got to have security at the front door, Doug, this is just, it's it's starting to make me wonder with regards to retail and supply chain, if home delivery is going to become cheaper than insurance and security.
Doug Draper 21:28
You know, that's a great, great pitch. I have not thought of the indirect consequences to that. And I was thinking, I was thinking marketing. Alright, and you're gonna get intentional shoppers in there. There's going to be an era of exclusivity. Why is there a line there must be something special going on in there. I need to be part of that. But I think your perspective, spot on, right? When you see all these videos of looters and things here in America, it's just, it's astronomical. So yeah, I like it's a good take.
Pete Mento 22:00
Thanks. I can't wait for this one.
Doug Draper 22:04
Well, it's related to a lot of scandals that some of our listeners may have heard about. It started with a chess scandal that popped up a couple of weeks ago. And just this past weekend, there was a fishing scandal and there's a poker scandal. So quick recap. Chess guy named Magnum Magnus Carlson's, the world champion, badass chess player, he lost to a kid in the US named Hans Neiman. Back in September, everybody was in shock. This Hans Nieman kid had some issues and maybe some some things going on with cheating back in the day, but he says he doesn't cheat anymore. Magnus is upset. The chess industry is up up in arms. There's a little chaos going on. Then this weekend, there was a fishing there was a walleye tournament in Ohio, and the duo that one they started cutting, cutting open fish because they had dropped lead balls inside of the fish to increase the weight. So they won. There was some cheating suspects found lead balls in these fish. And it was total chaos. And you can go online to see the video. And here's a shocker. A lot of cussing going on and profanity and a lot of it's a funny video if you can find it. And then when I was looking at those Pete the other one was this, this woman named Robert J. Liu, who successfully called the bluff of this famous poker player. Her cards were shit and his cards were terrible. But she ended up making like $270,000 on this one hand. So everybody's up in arms about that. So the thing that I have on those three things, well, not so much the fishing because that was pretty blatant. And I think on the fishing one, they found a tin of Copenhagen inside one of those fish too, and maybe a crushed beer can. But nonetheless, the thing pitas are we so jaded when the underdog happens to win something that our immediate response is cheating. So I don't know if that's commentary on the status or a situation of our world or what, but there's been some feeding in some pretty unusual, quote, unquote, sporting events. And I'm not so sure if our society is so focused on winning, that you have to cheat in order to win by any means necessary, or are we so jaded that we can't just allow the underdog to win time and again, and it will happen? So anyway, I'm not really sure, you know, are we secretly a society of cheaters? And are we so jaded that anybody that has any success is deemed a cheater? I just thought that was an interesting commentary.
Pete Mento 24:50
Well dug for two of those, for sure. They cheated. So I think it's more of a commentary on society. that people will do whatever they can to win. And then for the third one, I think it says more about why society has really gotten. We've overcome the game. So cards is a situation where if you're very good at math and statistics, it really isn't a game anymore. So poker sucks. Like that's why don't ever play cards when we duck I won't crash you, right? I, I do high end calculus in my head on the toilet for fun. Like I'm not the guy you want to play cards with. I don't play dice. I don't play roulette. Because it's not really. It's not something you can. You can use math on. Don't play fantasy football with me. I will crush you don't play fantasy sports in me, I will destroy it is a math game, right? It ruins sports. Baseball sucks now, because nerds like me are doing math night and day. It isn't a game anymore. It's a bunch of math geeks that never played baseball, telling millionaires how to execute their strategies. So it's not fun. But the NFL on the other hand, you know, just yesterday, you had a kid who was in his first NFL game ever, ever in Lambeau Field, historic Lambeau Field, right, who up until a couple of months ago, like he played a Western Kentucky for game or two, I guess before that he was like in Houston Baptist College, playing against Aaron Rodgers. For the Patriots, he almost pulled off a sub an upset man, everybody was rooting for him. You know, this is, this is kind of the whole point of competition is there are some sports where it can happen. And we love that. We love that. So where we keep mathematics and where we keep the nerds out of it. It's fun when it comes down to people who actually get to play. Sports are still exciting, and we all love an underdog. We love an underdog I will never forget, when Japan beat New Zealand and the Rugby World Cup. I think I talked about that. On the show before. Everyone I knew was texting everyone I knew turn on the game, this is going to happen. That was shocking. It was shocking. Doug, it would be like if a four year old jumped out of the closet beat me up like it was you just couldn't believe this was happening. So I think that cheating just becomes more and more and more complex. And more advanced. It evolves. As long as people bet on things. As long as there's money to be made. There's always going to be a graft. So I think that's really what the story is about. The stakes kept getting higher, people keep getting smarter, and our access to technology keeps getting easier. And that's why people keep shooting. Yeah.
Doug Draper 27:46
Well, the comment of the show thus far is keep the nerds out of it. I love it. I'm going to try to work that into my daily routine on a regular basis.
Pete Mento 27:54
nerds that have it. So that was halftime brought to you by a good friends at CAP logistics, who I'm sure every time they see halftime wins that we mentioned their name. But to learn more about all the great services that our sponsors offer pleases them at cap logistics.com. They're the reason that we are saddled with the mediocre skills of Kenan who keeps the show going and produces it and makes it available to you are wonderful, wonderful listeners and viewers. And please do learn more about them and their services at cap logistics.com.
Doug Draper 28:26
Yeah. All right. All right. Let's
Pete Mento 28:28
back to me, right?
Doug Draper 28:30
I think so. Yeah, I think that's this topic, too.
Pete Mento 28:34
All right. So back on currency, if you haven't been paying attention, the currencies of the world are on everyone's minds these days, because they're getting a little kooky, getting a little wacky. And one in particular, that should not get wacky is the RMB, the one the Chinese want you on, it shouldn't get wacky. The reason it shouldn't get wacky, is because the Chinese one, as much as they save it, it's not attached to the US dollar because it's associated with a market basket of currencies, totally associated with the US dollar. And it's not doing very well. So right now, it's, it's floating currency is actually dropping. Because they see the US dollar actually appreciating greatly against it. He's paying has said he wants to take some reserves of their hard currencies and buy back one. So when you start to buy it, and you make that everyone know, hey, I'm about to buy something, not to buy a whole bunch of it. Ah, what should you do? You should go out and get it so that the value of it goes up, you know, when the value that goes up, you know, appreciates in value. So they're down to those sorts of circus tricks to try to raise the value of it. Problem is those those types of that type type of trickery and foolishness is is not going to be a Now, the current situation of the Chinese economy is in such a state that the Chinese economy is roughly 20% of the global economy. And 30% of that economy is the real estate market. And it's crapping down its own leg. So if you do that map, that means that about 7% of the global economy is is an under question right now. And what drives most of that is associated with one currency. I don't care what you do. You can see you're given away teddy bears and shotguns if you open an account today, the ones going down. So it doesn't matter what he does. It doesn't matter what he does the differences, no one cares there. You can call him cell president for life. And it's not changing the political tenor of where he's at.
Doug Draper 30:51
Yeah. Well, you know, China, and I was thinking about this, that China, which is a dictatorship, communist country, if you look back, right image is super important with dictators, communists, we're seeing that, obviously, in Russia and, and China, and images, everything. And if the currency, Chinese currency is not positioned well against the US dollar, other currencies has to make a change, because it needs to be strong, because China is strong, and the nation is strong. And there's also some new political leaders and some elections come up quite a while those details. But you know what, when you start having some change in the leadership, you're a communist party that is all about image, you better make sure you spit, shine the machine and make something, make sure things are looking good. You got Image is everything. And the dollar is and the Chinese currency very important in that equation. So I kind of get the timing of it. And I totally understand, is it too little too late, but they're going to give it one hell of a shot, because they have an image to uphold, and there's changes going on in their in their country.
Pete Mento 32:05
Good luck with that. All right, bring us on, buddy.
Doug Draper 32:10
All right, this is a little different. You know, I'm usually in the transportation piece of it. But this one caught my attention. So this is the official global trade this week investment tip, you and I have forward thinking and this is a tip that's a little further out there. But I would encourage everybody to buy copper. Because copper is the key to almost everything that we need related to the energy transition from fossil fuels into clean energy technology, electric vehicles, batteries, solar, and oh, by the way, chip manufacturing, all of that needs to have electricity that has a conduit, and that is copper. Now, right here, now copper is dropped in price. But the bottom line is you start engaging the things that we're talking about, and things I just mentioned specifically with electronic electronic vehicles, and things of that nature, copper is going to become more in demand, it is a finite resource that is pulled out of the ground. And maybe a couple years out, but I tell you what, the copper industry is going to become very profitable. If you position yourself correctly. He and I only take a 5% commission. So if you start making trades in copper, please let us know we have keen and we'll keep track of that. But here's the deal Pete in your realm, you better find out who's making a lot of copper, which is Peru, Chile, Congo of all places. And Shaka China. Now the good news is US does mined quite a bit of copper. I've done a show on uptime logistics a couple of months ago related to copper down in Arizona. So we're or mining some of that stuff here. But we better developed some pretty favorable trade agreements with these countries take China out of it, that's a whole nother round. But these other countries that have a lot of copper, they're mining, we're going to need it. And we better have good relationships with these guys to make sure we're positioned correctly, the other piece of it on this would be the infrastructure of copper. And when I talk about that, because it is a supply chain, it's a chilling chain from beginning to end. And so if there's not enough infrastructure at the source, meaning we're going to mine a hell of a lot of copper really, really quick because it's being consumed. We need to make sure we have a robust infrastructure to move it in route from mining to consumption, and then also the production and an exclusion. Exclusion is that the right word? We don't just take a brick of copper and stick it into something right you got to exclude it. Gotta help me with that word, but Those type of technologies are going to be good. So think about the supply chain of copper, from mining, to, to use, and make some investments in infrastructure, copper is gonna go through the roof, it's not happening next month, maybe not even next year. But look out, copper is a hot commodity down the road, my friend. And
Pete Mento 35:21
we talked a few weeks ago about what we found in Chile, copper was one of those things, compensated initially run, it doubled in price from 2020, about a year ago, it had a sink and then back up again. And now that we found all this copper in Chile, there's questions about what that's going to mean for the Chinese copper market. But it's still very valuable, as you said, and recycled copper is very viable because of what you mentioned, at the end, they're turning copper into what you want it to be, is expensive. So being able to just recycle, it is extremely important. The environmental impact of mining copper as well, being able to use recycled copper is something that companies like to be able to say because of its impact. I don't disagree about two years ago, I talked about how commodities trading is probably we should be focusing, the volatility of copper is what scary, it moves, just the moves. So commodities are not for the weak of heart. So I don't give investment advice on commodities, because that's what I invest in. And, you know, you better be into bleeding ulcers and my Atlanta because it's, you're gonna have to be watching it. But all these commodities, it has to do with renewables, no matter what it's across copper, and certainly being one of them. This is the future of EVs for now, until someone comes up with better answers for it. So absolutely done. You know, copper, silver, platinum, all of them. They're all associated with it. And to be very frank, there's only so much of it, it's hard to find, and policies and regulations make it harder and harder to get. So we do need a free trade agreement with Chile, it's waiting. I don't know why we haven't taken care of it. That just needs to get done. And when it gets done, it's going to make this road a lot easier to handle. That might actually make it harder to make money on betting on Uber. So with that, my friend, we will close the book on another exciting, fast paced edition of global trade this week, brought to you by our good friends at CAP logistics. Doug is always what can I say? It's wonderful making this music with you my friend. Thanks to Kenan back in the booth. He gets an extra bag of Golden Grahams for this particular episode. Such was this amazing work. And we'll see you again next week with another incredible episode of global trade this week. Thanks, everybody. Thanks, doc.
Doug Draper 37:57
All right. Keep the nerds out of it. Get the nerds out. Have a dog