Global Trade This Week – Episode 192
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Keenan Brugh 0:00
You're watching global trade this week with Pete mento and Doug Draper.
Doug Draper 0:07
Good day, everybody. This is another edition of global trade this week. My name is Doug Draper, and I'm coming to you from the great city of Denver, Colorado. And Pete, based on your
background, I would assume that you are in a hotel room somewhere. So why don't you give us an update on where in the world is? Pete Minto, well,
Pete Mento 0:29
I'm just coming off a vacation, so I'm actually in a hotel room that I paid for. And you know, is it necessarily close to some windowless conference room at a building complex somewhere outside of town. I'm I'm in Chicago. I took, took about five days off to rest and recuperate. I did both, and off to Phoenix in a couple hours here. So that's, that's my exciting geography, Doug. Now you're also not where we're used to seeing you either, yeah,
Doug Draper 1:01
yeah. So I met, I guess, my brother's house in Denver, and I was talking to you that these pictures over here probably 10 minutes ago, there were the old school Black Light posters when we were growing up as kids. You know, we'd have, like, the Iron Maiden, Eddie, I think that was his name. Eddie. Remember that? Yep, and a steal your face. Grateful, dead poster. So I figured with our audience there a little bit more refined. So I took him down and threw up these pictures of trees and plants. So
Pete Mento 1:36
too. Doug, it's in
Doug Draper 1:38
that back room. Yeah, back room. So, no, it's fun. My son lives down here in Denver, so I got a chance to hang out with him a little bit. And, yeah, so it's been, been fun. Nice.
Pete Mento 1:48
Yeah, nice. Good.
Doug Draper 1:51
Alright, man, let's get this party started you. And Well, before we jump into it, tell me about your beard, man, you talked about keeping it until all of this is over. And I don't know what all of this actually entails or when it's going to be over. So give us the beard update, my friend.
Pete Mento 2:09
So it was supposed to be until China is sorted out, right? And, yeah, it's gotten pretty crazy, and unfortunately, I haven't had a chance to brush it out yet this morning. But I am, I am. I'm losing my mind with this beard. If it, if it, if it doesn't get like a significant trim between now and Monday, I'll be shocked, because it's just gotten out of control. But, and I don't want to be a store Santa Claus for for this Christmas to augment my income. So, yeah, this is going to have to get fixed. It's just driving me absolutely crazy.
Doug Draper 2:45
Doug, yeah, well, I don't think I've heard a man use the term brush their beard in a very long time. So
Pete Mento 2:53
Keenan was super long. I'm sure he had to, he had to brush it, you know, and put in all day conditioner so you don't get beard riff and all that good stuff. Yeah, having a long beard is a lot of work. I I had a guy in my in one of my speeches last week, he told me that. I said, How do you keep it looking so beautiful? I mean, his was probably down to here, and he said, Well, I have to oil it every day, and then, you know, every other day I deep condition, and we're having this conversation. I'm like, this is for do to look so manly, like the two of us are not having very manly conversations right now, but, but it was, it was, it was a magnificent beard, absolutely magnificent beard. And he was a younger guy. He was probably in his 30s, so maybe started growing it when he was 14. Doug, I don't know. Yeah, this, this, this is like a month of me not trimming my beard. I don't want to, I don't want to think about what I'll look like in a couple more weeks. I just, I can't take it anymore. Yeah,
Doug Draper 3:55
time to, uh, button that thing up. So, speaking of buddy, button things up. Man, let's get this show started. What's your first topic?
Pete Mento 4:02
Yeah, so my first topic is kind of good news, and it's also infuriating. Doug the Customs has finally come out with guidance on what are called the 232, tariffs. And guidance is super important. Usually it's it's rock solid. But recently, the guidance that we've been getting on this stuff has been sort of half answers, or it's leaving way too much room for interpretation. And the 232, tariffs are on articles of steel and aluminum. Well, as we've talked about in the show in the past, there's something called derivative tariffs, where a product maybe isn't all steel and aluminum, but it's on a very special list of Harmonized Tariff codes where the government is insisting that you pay the tariffs on the steel and aluminum derivatives. So the parts of this thing that are steel, aluminum, well, up until recently, what we've believed was you had to pay your regular, pre existing tariffs, three Oh ones, the regular duty from the tariff book. Anti dumping, countervailing, right? And then, if it came from China, you were supposed to pay the 25% on the steel and aluminum that was in this and then 125% on everything else. Not the case. So the guidance came out yesterday that says, if you have a steel and aluminum derivative product, you pay the 25% on the derivative and that's it. So you pay your regular tariff and pre existing tariffs, and then the 25% and that's good news for a lot of companies who were just getting tariff on tariff on tariff. It's bad news because a lot of folks are going to try to find ways to put their product into the derivative tariff to avoid paying the Chinese goods. And the problem you have with that is, you know, weeks or months down the road, when these tariffs go away, you're still stuck paying that one in your new Harmonized Tariff code. And you try to avoid that 125, for a few months, but now you're in a much deeper hole. You know, we talked one time about the, I think we talked about the Fisher cats. We talked about, yeah, we did. You know, they brought in the Fisher cat to deal with the porcupines, the Fisher cats got out of control. So then they brought in the Badgers, and then the Badgers got out of control. Then they brought in the bobcats, right? You try to make a short term fix on something, not thinking about what the long term problem is going to be. Do not do knee jerk stuff. Like mess around with your Harmonized Tariff codes. Don't play around with your value. Don't do anything stupid about the country of origin. If you've been importing something the right way for the past 510, 20 years, don't fix it now you're going to get busted by customs and you're going to be in a difficult conversation about if you were lying before or if you're lying now about your goods.
Doug Draper 6:41
Well, that is excellent information, right? Ask for forgiveness, not permission, is not really going to play in this modern era. And the one thing you know, I am educated, you are to the 10x educated related this topic and the nuances of guidance that keeps coming out is still very confusing and potentially dangerous to importer. So I'm glad there's some clarification. But if we do have these tariff negotiations, country by country by country, the nuances that come into play could just be, you know, overwhelming the organization that's trying, legitimately trying to do the right thing, and misinterprets it or make some wrong assumptions and really puts themselves in a bad spot. So it's good that there's some clarity and some guidance, but man, I hope it's not consistent like this on all the trail trade deals that are going to be transpiring.
Pete Mento 7:43
Yeah, I agree. It's trash. The guidance is trashed. Let's call it what it is. And you know, because we're always forward looking, I should probably mention this, buddy. I think you're going to see a lot of fines, penalties after the fact, issues with audits, a lot of people where this is going to catch up with them, unfortunately. So I won't be surprised if a year from now, in the new audit statistics are ridiculous. The amount of money that customers bring in on fines and penalties, the infractions that they're finding it's proposed. I mean, it's through the roof. It's bananas. And where we're going to be a year from now, I think is going to be even worse. How
Doug Draper 8:15
far, you know, I didn't even or this popped in my head when you were talking, how far back in the rear, so to speak, can, can, can custom, five years, five years. Oh my gosh, yeah.
Pete Mento 8:26
Good long time, buddy. Good long time. Yeah. Well,
Doug Draper 8:29
here's to clear guidance in the future. Indeed. Nice. Well, cool man. My first topic is, you know, we've talked about supply chain and how it's all interconnected, and all that kind of good stuff. And there was so this is about what happens when product hits the US, right? So we talked about the explosion. Most customers, I know, I've done two things, oh my gosh. And again, this is, like a month ago. We don't know what's going to happen. Turn on the Jets, get as much stuff in here as you possibly can. And then there was the other side of the coin, which was slow it down, panic is more expensive than patience. Let's just wait and see. And so there was this explosion of transportation and volume coming into the US, right? That truly is died off, right? And you're seeing that in all the statistics that are coming out. But that explosion of volume is now in the United States. And so what happens after it gets on a on a vessel, generally goes into a warehouse, and then in some instances, it rolls onto the the end user. But one thing I've seen Pete is an astronomical amount of inquiries on Do you have a free trade zone, is your facility bonded and my, you know, my, my thoughts, I never, well, I shouldn't say never. Literally, it is crazy. Every type of four PL that's out there is coming to us. Do you have bonded? Blah, blah, blah, and I keep saying in a very respectful and polite manner, is like if you hadn't had. This conversation, like three weeks ago. You know that ship has sailed like it's it's been gobbled up and non existent. And the one piece that comes up is that, yeah, there may be a warehouse that has a bonded facility, but in most instances, it's a pretty small footprint within the within the warehouse. So, hey, we have 100,000 square foot warehouse. I'm looking for a warehouse. Hey, I'm looking for a bonded warehouse. These guys say they have 100 square feet. My problem solved. You call them up and they're like, Yeah, we got about 4000 square feet in the corner that we use as needed. So that space for our listeners, if you hadn't had that discussion weeks ago, the likelihood of you finding it in a manner that's not going to be incredibly expensive is gone, right? I mean, I've heard stories of $120 per pallet position per month to get into those type of environments. And then the other piece is all right, well, just get bonded, just make a phone call and get it done. And I don't think people understand the amount of time compliance training that needs to go on, and the same people that are dealing with all this customer CBP, are the ones that come out and do the inspection. So the likelihood of you saying, I want to be a bonded warehouse in three to four weeks, just doesn't happen, right? I mean, it is a long process. So I think what you'll see is, you know, companies will say, well, let's get bonded in the future and see what transpired. So I think there will be some benefit there. But, you know, the supply chain comes or an explosion of inbound from so the ocean freight caught a lot of attention, and now this warehousing piece is it's just over the top. And since that's my my core business, it is amazing how many phone calls I have taken related to that topic. So I don't know if you've heard about that. I mean is DSV have those type of facilities. And what's your vibe out there? I
Pete Mento 11:59
hear about it all the time, Doug, and I pretty much mirror your comments exactly where I say there's two bets you make, right? So if you put it in a Foreign Trade Zone, you're betting the tariffs are going to go up, not down. And if you put them in a bonded facility, you're betting the tariffs are going to go down, not up. When you put it into a bonded facility, the tariff is paid on what it was, what the tariff was when it exits. If you put it into a Foreign Trade Zone, the tariff is what it was when it went in. And this the for these particular tariffs. And it's almost the exact same conversation, Doug, where I say to folks, okay, so you're going to avoid paying the tariffs, but what's it going to cost you to store it? What's it going to cost you to bring it there now it's on your inventory. So what's the cash issue that you're going to have there? Because you're going to have to pay for it with your foreign supplier. Have you really done the math on this? And then when it turns out that math is great. There's no space buddy. There's no space like anywhere in zones or in in bonded facilities, especially bonded facilities, because most people are making that bet it's going to go down, not up, and then it becomes a supply and demand issue. If you do find it, well, of course, people are going to charge more for it, right? They they have a limited amount of of product, and they know that the market really wants it badly, so they're going to charge more for it. One of the externalities that things I think is going to come out of this is, I think you're going to see more companies like ours, our yours and mine, looking at ways to have more bonded areas, more bonded square footage, to help us with with these things. Going forward, I don't think this will be the last of the trade wars, and I think that American companies are going to be looking for some kind of opportunity to identify bonded facilities in the future to try to avoid these tariffs. And I think also, again, to the point you made earlier, that you're going to see more American importers that are considering bonding their facility for use into the future. Yeah,
Doug Draper 13:53
yeah. Interesting stuff. So Well, that brings us to half time, great fun part of the show. This is where Pete and I can talk about whatever we want. Sorry, I keep bumping my table here, and that's brought to us by CAP logistics. Keenan and the team put us on the air every single week, and we appreciate that. We appreciate their support. So check out cap logistics.com. All right, halftime, Pete, I have no idea what you're going to talk about. So what a rip. All right. Well,
Pete Mento 14:22
this last weekend was the NFL draft, and I have spoken many times on this show about how much I love the draft, and this year did not let me down. We had all kinds of very interesting drama at the pageantry of it, as well being in Green Bay, of all places, it was wonderful. And so when I wasn't out doing whatever I was doing this weekend, I was glued to the TV. I find the stories of, you know, a young man who's really dedicated their life to being an athlete, having a phone call from someone and finding out I'm a millionaire, and I have an opportunity to fulfill my dream of. Playing in the highest possible League. A couple of things that did happen that I just loved. One was the new offensive tackle for the Patriots. The two things that happened him, first of all, he said, I'm going to, I'm going to die out there to protect, to protect the quarterback in New England. And, you know, that fires me up former football player. I love that crap. And then the second thing I loved was they showed all the draft guys videos from their moms, so you have, like, this super emotional moment where you just got drafted, and you walk across the stage, and then they they've got a video monitor set up, and they give you headphones, and it's a message from your mom or your grandma saying, How proud. Everybody cries. Everybody cries, you know, all the sacrifice and the things we had to do to make this happen, we're so proud of you. You did this on your own. You don't know anybody anything, just they were amazing. And then the third part of it, Doug, if you have a chance to watch the video, it's pretty awesome. The first, I think five people that were taken to the draft were enormous human beings. They're quarterbacks, offensive linemen, right? So they're all like, 6566, just gigantic human beings. Well, then Aston genti gets, gets, gets drafted. When you got drafted, you'd walk down a hallway and they gave, they'd hand you the hat of the team, and you were looking into this, this mirror, and there was a camera behind the mirror. Well, everyone that came through was super tall, but Ashton genteel, I guess it's like five foot five foot nine or something. And all you could see was the top of his hat in the video. And it was hysterical. And then, of course, the last thing was, what happened to shador Sanders. He was supposed to be. I was expecting that the saints were going to pick him at number nine. He was going to be our new quarterback. But what we're learning is that people didn't want him because of the way that he acted in his allegedly acted in his interviews, and people were concerned that if he came in as a backup, that people were going to say, All right, we got to put the kid in. And then if things still weren't going well. They were going to have to hire his dad to be the head coach. And I don't know how realistic all of that is, but it's, it's interesting to think that between the prank call that he got and all the rest of it, much of this draft was really about this one particular person. It kept falling in the draft, and honestly, they just added to the drama of the show that I watched all weekend, and he ended up with the browns. So Colorado, Colorado, by way of of Mississippi, by way of Texas. Product will be playing in Cleveland. So, yeah, I just love the draft buddy. I thought it was fantastic.
Doug Draper 17:35
Yeah, missed it. Knew it was going on. But anyway, being in Colorado, the sugar Sanders thing was, was front and center, so that that the prank was funny, right? You have to admit that that's just, you know, college guys being college guys, so I can respect that. But you know, to see He's a good dude, right? I don't, personally, I don't think he's going to be ultra successful in college or in the pros, but he's a good guy, you know. He's very verbose, like his dad. But anyway, it was kind of not sad. It was just like, Wow, man. He's a real human and he's experiencing some some, you know, doubt maybe in his abilities. And it was, you know, it was, I can't think of the right word, Pete, but it meant a lot of news here in Colorado.
Pete Mento 18:23
Yeah, I'm rooting for the kid. I hope that he takes all this and he fuels it to I have a the I collect autograph football helmets Doug, and I'm putting together my hall of shame right now. And so it includes Michael Vick. I have OJ Simpson. I have an autograph Buffalo's OJ Simpson helmet, I have Ray Lewis, and I have Aaron Hernandez. And so friends of mine were joking me this weekend if, if chadors can be like, No, he's not. He, I said, Holland, these are people that are convicted of major crimes. This poor kid just slid down the draft order because he said, some kid stuff, right? We all were overconfident growing up. No, he doesn't end up on that list. I hope chador Sanders is someday as an MVP. I hope he gets to shove it in everybody's face.
Doug Draper 19:08
Okay, alright. Well, hey, brother, mine's related. I love yours. Yeah, is related to travel, right? And it came front and center because of a personal experience. I was out in California, took a little time off like you did, visited Morro Bay and visited the Hearst Castle up in that central valley. Have you ever been to the Hearst Castle? No,
Pete Mento 19:31
I'd love to see it. It
Doug Draper 19:33
is. I was blown away. I kind of knew about it. So anybody that's out there, it's a little hard to get to, but it is definitely worth it. So that's not the point of my my halftime. But so I was on a plane, and I was coming back, and I just realized that people on airplanes, if you're like, I was about to say under 40, but I'm seeing this more and more and more, for even people our age, is that the second you get on the plane. Plane, you put in your ear pods or your headphones, you look down on your cell phone, right? Old people open up their tablet. Nobody does that. If you're younger, you wait on your phone. Nobody looks at you, nobody makes eye contact. And so I'm just kind of wondering, you know, so not to get too deep, but to me, that's a singular experience. It's me and my phone on the plane, right? And humans are naturally conver you know, like they gotta have conversation, right? It's collective, right? It's not a singular experience through life. It's a collective experience through life. But I'm just wondering, like, where is the casual conversation? Right? You're on a plane, you're sitting next to a stranger. You got two choices. Don't look up, don't look them in the eye, and be in your singular world. Or you can have a slight conversation. You know, where you've been, where you're going, whatever it may be, but you know, don't be that guy that chirps your ear off the whole trip, right? You don't want to do that. But you know, a little camp, casual conversation, engaging with, you know, other humans in the world is a lost art on the airplane, because when I saw it on the plane on on Sunday, didn't exist. Everybody's just looking down on their phone. So Pete, what's your take on conversations on a plane?
Pete Mento 21:19
Don't do it ever under any circumstance. Yeah, I am I okay, I'm a hypocrite, and here's why Doug so, I fly a lot. I fly a few times every week, and it's just a part of my life. I also give speeches. And when I give a speech to 2345, 1000 people, right after the speech, there's generally a line of people who want to ask me questions, get clarification, grab my business card, whatever. So I'm I'm a a hyper, a hyper interactive person. I mean, once a week, the two of us get on a video call to talk to the world about what we do right on the plane is the only time that my phone doesn't work, that I'm not getting text messages from people and I don't buy I try not to buy the the internet package, because it's it's a couple hours where I can be alone with my own thoughts, I can listen to my music, take a nap, and no one's going to bother me. Heaven help. You're the chatty you know the chatty lady from Wisconsin who can't wait to tell me about the four grandkids and their cats are going to go visit, I don't care, and I will tell you, to your face, I'm just not a chatter. I'm sorry. And I'll turn up the music and just drift away, baby, like Boston said, I don't want to talk to you now. I'm a hypocrite, Doug, because God help you if I'm in first class and you're famous, because we're talking. And that has happened to me dozens of times. I've sat next to all these celebrities that sit down and it's on, I have questions, and you're going to answer them. Now, you know, I sat next to Alan Kamara once on a flight from San Francisco to New Orleans, and he, when he sat down, I freaked out, and he said, Listen, I gotta take a nap, but on the descent, I'll answer whatever questions you've got. And so I just sat there, kind of staring at him while he slept like a weird girlfriend. And then when we when we were on the descent, I was just made of questions. I sat next to Darren McDaniels from Run DMC on a flight from Colorado, actually, after the all star game, maybe four hours with the best conversation, Mariano Rivera. We sat next to each other from New York all the way to Panama, and he was magnificently nice to me. He was just positively wonderful. The entire flight sent to Tony Romo asked about Jessica Simpson, mostly the entire flight. I mean, Doug, if you are famous and you sit next to me, you better strap in, because we are going to talk right. Otherwise, no, don't talk to me. So I'm a hypocrite. I'll admit it.
Doug Draper 23:52
Yeah, well, at least you like you said, at least you admit it. So you
Pete Mento 23:58
talk to the steward of stuff. Yeah?
Doug Draper 24:01
Yeah. The other pet peeve is that, you know, what happened to having a little respect for yourself on an airplane with, you know, maybe a collared shirt and you're not wearing slippers, you know, a jumpsuit that looks like you've slept in it for a week and a neck pillow, right? There's a lot of that going on too. So here's, here's
Pete Mento 24:21
what I always wait for, Doug pajama pants, like Cookie Monster pajama pants, yeah, frocks, right? That's, that's part of them together. And then a sweatshirt that was clearly bought at the airport. So it'll have the city, name of where you are, because they showed up in a T shirt or a tank top and didn't expect to be cold, right? They've got the enormous headphones on. It's always college students that look like this, right? They've got the enormous headphones on, and they have a backpack slung over one side that whacks everybody in the head the entire time that they're walking down the aisle. I look for that every single time. I get on a plane, I get, I get kind of excited when I see like, oh, there it is. There it is, yeah, so I'll start taking pictures and send them to you guys. Sorry, go ahead.
Doug Draper 25:11
No, I was about to say you saw one in the wild, right?
Pete Mento 25:14
Yeah, yeah. I, I generally Doug. I will have on slacks, and I will have on a collar, a button up shirt, and I will have a jacket, because usually, wherever I'm flying, I'm immediately going to something for work. So it's, it's relatively rare that I will not be dressed up once I get off a plane.
Doug Draper 25:31
Yeah, yeah. I guess I remember
Pete Mento 25:34
my dad traveling for work, and you know, he would show up little early. He'd go to lounge, have a couple drinks. He'd always have a tie on, and he flew coach like everybody else, but that's back when you were smoking on planes. Doug, so it was a while ago.
Doug Draper 25:50
Awesome. Well, that's half time. Brought to you by CAP logistics. Again, as we said the at the start, we appreciate their support. So cap logistics, com, check em out. Alright, we're on the back half, my friend. Topic number two, what you got?
Pete Mento 26:03
Yeah, so I'm happy mine's not going to step on yours, but I'm talking about ups too. Did you see the news this morning on ups? No,
Doug Draper 26:14
I did not.
Pete Mento 26:15
Ups, their board of directors made an announcement that they're going to lay off 20,000 employees. Two, zero, 20,000 Okay, so I start reading the start reading the article. It's because of E commerce. It's because of changes in in consumption of E commerce. Mean, a lot of it has to do with this 321, de minimis thing, right? Well, here's the thing, man, what happens when imports go back up again and you've just let 20,000 people go? So my conversation is not so much about UPS Doug, my conversation is about this broken industry that we have chosen to devote decades of our lives too, because we apparently continue to learn nothing from the past. Here's what happens. The market goes down. People freak out. We lay everybody off. The market comes back, and we try to hire them all back. And this is a I still believe that this is transitory. This is a short time, short term problem, and it will end up getting it'll get corrected, and when it does, you've got to go out and find people to come back and work, probably at volumes and probably in chaos. Worst thing you let them go during COVID. Everything went to hell. And if you had a heartbeat, and you could type like people were getting hired in transportation. Then when COVID settled down, what happened? People were losing their jobs, left and right, mass layoffs, mass firings, people leaving the industry because they weren't getting commissions anymore. And then what Red Sea, you know, strikes. All kinds of crazy issues happen, and we've got to find people again. And now I just see it the cycle. You know, time is a flat circle. We just keep making the same mistakes over and over again. And hey, who am I to tell a company like UPS or FedEx what to do? I'm sure they've got, we've talked about this, right? Like a, like a brain trust of people in a basement somewhere. They're just like they're feeding them Red Bulls just knocking out math all day long about what they've got to do per kilo rates down four cents out of Hong Kong. Fire, fire, fire, right? Like they're that's, that's kind of how I feel. It probably goes. But when are we going to learn that these knee jerk reactions in our industry ultimately come back to bite us in the ass, because volumes come back and now we don't have experienced people to manage it. We're not creating a pipeline of folks to stay in this industry, to get better and better every year. So Doug, it's not so much about ups as it is about our industry. When are we going to learn this lesson?
Doug Draper 28:56
Never. And my take, the one thing I was thinking of while you were chatting was shareholders and Board of Directors, right? I mean, if you're holding UPS, FedEx, whatever it is, logistics, transportation, or anything else you want to make money, right? And there's pressure out there to meet earnings and continue the Northeast trajectory of the of the bar graph, right? So I don't think it'll ever change. I mean, I get it right. Things have have changed, and you got shareholders to report to and and so I think it will. Your points are valid. And I, and I totally get it, especially in our industry. It is very cyclical, and we need you when we need you and when we don't go away. But I don't think it'll ever change. And I guess it's just, you know, Don't hate the player, hate the game type of thing, right? It's
Pete Mento 29:53
unfortunate buddy. Yeah, all right, Kyle, bring us home. Yeah?
Doug Draper 29:58
Well, you know what we should have. Sponsorship for ups on this show. So we'll reach out anybody that wants to drop us a couple grand. We'll, we'll, we'll reference ups as well. But mine is about ups and an acquisition they made up in Canada, um, and Lauer, right. Hope I'm pronouncing that right, so I'm just going to refer to it as a h, g is a health care and cold chain provider up in Canada, 1.6 billion acquisition. And when I saw this Pete, I was thinking of this old adage, you know, the industry is playing checkers, and I think UPS is playing chess, because the whole e commerce is just a spiral to the basement, right? Everybody, it's a grab for high volume, right? We're losing a little bit on each shipment Pete, but we'll make up for it in volume. And so while everybody's chasing the E commerce and the team you and she in and all that kind of stuff, I think, UPS, is saying, You know what? Let's get into some high value commodities. Let's get into things that people are willing to pay for because you you have a medical situation. My brother's in healthcare. My son's in healthcare. You know what? When you're sick, you it becomes a priority, or you're doing testing, or whatever. And so I don't really care if it costs $100 or it costs $10 I need it. And so diversifying into healthcare logistics, I think, is a smart play. They'll always be involved with E commerce, you know, they're one of the biggest players out there. But I saw this one and I said, it's a good play, right? And you and I, you know, being from my airborne days, I hated ups and I hated FedEx now that airborne is out of business, you know, you got to respect what they're doing. They're smart companies, both of them. But I was like, I could get it that that is positioning themselves to tackle higher volume shipments that need a sense of urgency, that you're not going to get nickel and dimed to get to death when somebody says, Well, this other company can, can do this and, you know, yeah, how was My take on ups, the
Pete Mento 32:13
bull chain stuff really does fascinate me, honestly, man, it's, it's something that I just barely have a handle on as far as understanding it. But what normally gets my attention with it Doug is the number of products that you don't think would need. Would need temperature controlled solutions that do things like semiconductors. You know, there are, there are parts of the electronics world that do require temperature controlled movement. And it's, it's become a really smart thing to invest in, to have that that capacity, because there's not a lot of it, it's very difficult to find. So when you do have your own assets, both to move the cargo and to and to store it, you know that has a lot of utility for for many companies. And if you capture a client and they're happy with the way the business is going, it's pretty difficult to get them away from that solution you built for them. So I can understand, I agree with you, Doug, you know, they're making a long term investment in an idea here that will just continue to pay off dividends over time. And odds are, you know, as they build it up, maybe they sell it off somewhere down the road and make money on the fact that it's been increased. But I got to tell you, Doug, I think we're going to see a lot more investment in cold chain. A lot of that having to do with with with the microprocessor world, which apparently needs temperature control. So, yeah, fascinated by Doug, absolutely fascinated by it. Yeah.
Doug Draper 33:30
Well, my, my brother's into sustainability, and he's got motion sensor lights down here in his basement. So I don't know what just happened behind me, but the power did not go out. I just need to wave my arms to turn the turn the lights back on. But anyway, no problem,
Pete Mento 33:42
buddy, we can still see it. Well, that's going to do it for Doug and I in global trade this week, brought to you by our great friends at CAP logistics. To learn more about CAP logistics, go to www dot cap logistics.com, that's how you know that I'm Gen X, because I still say the three W's. We want to thank them for all their support, just as another reminder, we don't work for CAP logistics, and they still give us this platform, give us the opportunity to share this information with you. So please do check them out. And as we say every week, if it's happening in global trade, we'll talk about it at global trade this week. Thanks. Doug, see you next week, buddy.
Doug Draper 34:19
All right, travel safe, my friend, Facebook, you.
Transcribed by https://otter.ai