Global Trade This Week – Episode 242
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Keenan Brugh 0:01
You're watching global trade this week with Pete mento and Doug Draper,
Doug Draper 0:07
hello everybody, and welcome to another edition of global trade this week. My name is Doug Draper. I am only one host of this show. I'm coming to you live from the 19th floor of a hotel in Kansas City, Missouri. My partner in crime, Mr. Pete mento, based on your background, looks like you're at home and I'm in a hotel, which is usually the opposite.
Pete Mento 0:30
Eddie back in DC, no complaints. Nice to have a home game.
Doug Draper 0:35
I love it. How's that cross country flight? I know last week you were out. We were both in California, and California to DC is a lot further than
Pete Mento 0:44
Yeah,
Doug Draper 0:45
or a lot farther than California to Denver.
Pete Mento 0:49
The way out was fine. The way back, I had to get rerouted, and my flight from San Francisco to Atlanta on Delta was eventful. Doug, it was eventful. Yeah, the I was in the middle seat, and Coach always fun, and a woman older than me, all right, so I'm start with that. Sat down next to me and said, So how are we going to work on this? How we going to make this work? And I said, What do you mean? And she said, Well, you're very fat. Wow. So how are we going to make this flight work? Because I can tell you already I'm not comfortable. And I said, Well, I don't want to tell you, man, I can do some squat thrust, maybe get a couple burpees in before we take off. She said, No, I'm serious. I don't want to have to touch anyone this whole flight.
Doug Draper 1:42
Wow.
Pete Mento 1:43
And I said, All right, well, super sorry, you can talk to the stewardess. Maybe she can help you out. So she wrote on her phone, the man next to me is very fat. Can I sit somewhere else?
Pete Mento 1:56
Whoa. And
Pete Mento 1:57
when the waitress walked down the aisle, she showed that to the waitress. So stewardess and the stewardess said, I'm sorry, man, but the flight's full, and she was in a huff. So Doug, I'm not going to say that I purposely made her life miserable for the next four and a half hours, but she didn't have a very fun flight.
Doug Draper 2:22
How
Pete Mento 2:23
about that?
Doug Draper 2:24
Yeah, let me ask. Was her name Karen, by chance?
Pete Mento 2:27
I don't know, but you know, she was kind of a chubby lady. I'm not so sure she had many stones to throw,
Doug Draper 2:33
but
Pete Mento 2:34
I'm just gonna say Doug. I had to get up around 11 times that flight go to the bathroom,
Doug Draper 2:40
so we were not Yeah, not a very good middle seat passenger, my friend.
Pete Mento 2:46
I mean, I'm not, I'm not saying that. I'm a svelte person, but I have lost a considerable amount of weight recently, and it just, you know, for some people, it might have made them rush to the gym when they got home. It just made me want to find wherever she was, anywhere in the world, and make me comfortable, uncomfortably close to her
Doug Draper 3:07
whenever
Pete Mento 3:07
possible. When she got out of the seat to get her bag, I let everyone in front of us go, first, everyone, absolutely everyone, and then I slow walked into the front, had a conversation with the stewardess, thank you for everything before I got off, and then I made sure that I weaved going up the ramp
Pete Mento 3:29
so she couldn't get past me wherever she was going.
Pete Mento 3:31
I hate to admit this, but I can be a very small minded, petty person,
Doug Draper 3:37
and
Pete Mento 3:37
that was in full bloom when I flew back to DC,
Doug Draper 3:42
yeah, I can sense that. Well, my halftime, in honor of your this or that is travel related, so I think it'll be, can't
Pete Mento 3:52
wait.
Doug Draper 3:53
It's good segue. Speaking of segues, this shows about global trade, so let's get this party started.
Pete Mento 3:58
Yeah, buddy. So last week, specifically on Thursday, the Court of International Trade struck down the 122, tariffs, claiming that the economic environment did not support the use of Section 122, tariffs, which most people would agree most economists certainly did, bringing much joy to the trade community. Right? There's anywhere from about 55 to $80 billion of tariffs that have been paid, and right now, we kind of feel like we're in a groove. We know, we know what's going on when it comes to tariff refunds, you know? Well, we might not actually. So on Friday, the government successfully appealed the decision. The Court of Appeals and the CIT have stayed the tariffs until a decision is made. So we're all still paying them, which, of course, in gopher big they also mentioned that only companies that filed suit were currently going to get that money back. They have not made a sweeping decision like they did in the IEEPA tariffs to allow everyone to make refunds. So we're kind of right back where we. Were, I'd say, you know, four months ago, before all this went to the Supreme Court, we don't know what the appeals court is going to say. There is a chance that they will not agree. This is not as much of a slam dunk as we saw with with IEEPA. So there is a chance that these these tariffs will will stick around and people will have to pay them at least for a little bit longer, up through July, I am skeptical of the government's case. Of course I am. It's like saying, you know, who do you think is going to win the game? The good guys are the bad guys. Definitely team good guys here. But I don't think people should be rushing to put that, collect that money back. There is a chance that the government will be able to make a good enough argument to the appeals court. I'm not sure that this will be be heard by the Supreme Court. Think they already feel like they've spoken to tariffs once. So unless there's something novel about it, I don't know if it'll go with the Supreme Court, but it is just another case of tariffs go in. Everyone kind of knew they probably wouldn't stick around. Roll the dice, take the chance, and then we find ourselves trying to get the money back. The difference is, I'm not so sure it's going to be an open and shut case on how we get it back, if we'll use Cape as an example, which is the current process for EPA, or if you're gonna have to use the courts. So still, a lot to learn about this one, Doug, but initially it feels pretty good to one another on
Doug Draper 6:18
this. Yeah. Well, I think the cat's out of the bag, so to speak, or whatever. Can't put the toothpaste back in the tube, whatever you want to say. So I think the fact that the Supreme Court made their decision on IEP tariffs, I think that is seeks well, and sets some precedent, obviously, for additional tariffs and refunds and things of that nature, and I would assume it's just my personal opinion that cape you spent all this time and effort and money to make that a fluid change. I don't know if it's fluid or not, but make the refund process a little bit more streamlined. So I don't know if it'll go down, but I think that there's precedent being set. I think this is another way that, hey, possibly, the government's trying to circumvent a ruling to say, Well, if you're not going to let the IEEPA tariff stand, and we'll Zig right, and we'll try this one, and then maybe another couple of months, they'll Zig left and see if they can continue to implement these tariffs. Because it's certainly a comment. And what am I trying to say here? Pete like a I want to say marketing, right? I can't even think the right word. But what I'm trying to say is that there's a lot of press around look at all the money we're collecting from tariffs, and to make that statement, and then go back and do all these refunds, more money on the face. So it should be interesting,
Pete Mento 7:52
agreed, buddy,
Doug Draper 7:54
yeah, yep, yep, yep. So Cool beans. All right. Well, I decided to wait one week to bring this topic up last maybe it was last Friday or so they talked about Amazon supply chain services, where they're going to open up, you know, their freight services, warehousing, fulfillment, parcel shipping network, which is primarily Amazon, to any business, not just Amazon sellers, and the FBA Fulfillment by Amazon. So it's interesting. Here's I got three or four takes on this. One is little bit of media hype, in my opinion, it is different, and a lot of name dropping going on with who's on board, right? All these big companies, which I think is going to draw attention like, oh my gosh, if they're involved with this, maybe we should take a deeper dive. The other take is, if you want flexibility on your fulfillment, specifically, it's not going to happen, right? Amazon is a machine. Wouldn't say it's their way or the highway, but I guess I'll say it's their way or the highway. Being in the fulfillment racket myself, there's so many instances where companies say, oh, yeah, this is exactly how the process works for our returns, or this is how we send you orders. It's always this way, except when it's not, and then I need you to do this thing a little bit differently, well, except when it's not, it's not going to fly with Amazon. So the big boys that are very structured and may take a part of their supply chain over is more used to that. But you know the medium size 3e commerce brands that need a little bit of flexibility, I think it's going to be a little difficult. Do you want a single source? Could be challenging because you don't have other options. Again, the big boys could take part of their supply chain, and it's a strategy kind of like a China plus with sourcing. So the big guys that could put a little bit of their supply chain in there, I think we'll have some advantage. And the other thing that immediately came to mind Pete, and this is my last my last comment is that any type of large RFP or bidding process this new service offering is going to be used as leverage, potentially do a downward spiral to the bottom right. Oh, we have these four players. Bring in Amazon. Let's see what they're involved with and their flat rate structure that they have, which is basically, I'm just making up numbers here, $8 to pick an order and get it to its final destination, is unrealistic for most providers. And so again, I'm not saying it's $8 but it's going to be pretty, pretty cheap. And so I think that's going to be bad positioning for other three pls out there that the C suite folks are going to bring in Amazon as a benchmark, and could be a downward spiral to the bottom, so we need to be careful of that. But those are kind of my comments on the new service offering they rolled out.
Pete Mento 11:10
I've been asked about by a lot of people about this stuff. I got asked for a different show that I was on. A lot of clients have asked me what I think about it. And here's the story I share with them. I worked with a gentleman who was very smart, first of all, and also kind of mischievous. And when, when Amazon first started their free delivery with Amazon Prime, he said, This is ridiculous. There's no way they'll be able to do this. So he had a 50 pound bag of dog food delivered to his house. He didn't even have a dog. And then he would return the 50 pound back, and he would do it over and over and over again. He said, I will break them. I will break them. He never broke them. I think that people underestimate Amazon to their peril. I think there are folks that have a sort of a pre sent mental opinion that something's going to stop this from working. I started learning about Amazon on my right home in my car, my 86 Ford Thunderbird, you know, on the way back from work before a show, and hearing about some guy who was selling books that he was going to change everything using the internet. Like, that's adorable. Good luck buddy. You're never gonna be Barnes and Nobles. And then it was, you know, we're gonna sell everything. And then it was, we're gonna sell everything and get it to you in three days. Where's everything you get you in three days, and we've got free returns on practically everything. I don't know, man, every time there's been some kind of insurmountable logistics problem that's been put in front of Amazon, I've been shocked at their ability to actually produce. So I'm done being shocked anymore, and I'm done being filled with wonder. And you know, there's no way kind of evil, keen evil, is definitely jumping the Snake River here, like it's gonna happen. So I I'm just gonna assume it's going to work out fine. They've got all this ability to buy they've already got so much of their own cargo. I would love to be in that room, the Doug Draper fantasy room of 1000 accountants with their little machines and their visors, because, you know that happened too. I think that they've probably done the math on this, and they know what they're getting into, and they're ready, and in a market like this, when size really can move the needle because of the expense of everything, I think they're in kind of an individual position. So I take that as a warning to the rest of the freight community. Don't take this lightly, because they're not and they've got the money, the power and the bank account to fight, and I think they're probably gonna do pretty damn
Doug Draper 13:42
well
Doug Draper 13:42
done. No, I don't doubt that at all. Just think that there's certain players out there and companies that may find it to be not the exact right fit for their business, but yeah, they're gonna succeed based on all the things that you
Doug Draper 13:54
just
Pete Mento 13:55
said. It's a great point, like, has Amazon ever had a competitor of the size, scale and in footprint that they're dealing with in a UPS, a FedEx or a DHL, I don't really have, so we'll, you know, we'll see. But if you just go on LinkedIn, they've hired some really good people, and I think that's a big part of what I believe they're going to be successful too, is if they can get these folks to buy into their idea, they must have something pretty damn good under the hood. Yeah, yeah, good point. All right. That brings us to halftime, brought to us by our friends, Cap logistics and Keenan,
Doug Draper 14:30
who flips the levers and pushes buttons. Appreciate them, bringing the show to everybody every single week. Check out. Cap logistics.com, halftime, baby. What you got?
Pete Mento 14:41
Man, the mobile contraption, right? So we carry our silly little phones everywhere we go. I really hate them, and what I particularly hate is I feel like I've been duped, like I've been had by the mobile phone. I really. Want something to wow me. I remember having my very first mobile phone, my star tag for Motorola. I remember moving from that to various other phones that really, nothing really changed, and then, boom, iPhone gives me this little square that does everything you know. But since then, has anything great happened in mobile phones? Anything really blown me away. A couple of years ago, I got a Samsung fold. It was like carrying a cinder block in my pocket. I didn't really understand what the big deal that was. It went right back to Apple this fall, Apple, apparently is delivering to us the apple fold, Doug, the Apple fold, which will open up to about the size of an apple Mini. So you'll have a regular phone. It's rather thin. You open it up to a full size phone, imagine your iPhone just basically opening up into two and giving you more of an iPad feeling. I think I'm in on this. I think I'll be one of those early adopters that tries it. They don't like it. I'll just wait a year and get something else. But I think I need something like this in my life to shock and awe me, to wow me. So the question is, Doug, are you in or out? Are you going to keep the phone you've got now? Because, damn it, it works. And what's the stupid point, which I think a lot of people are there mentally right now, or are you going to try something new, just to give it a shot. You already know the answer to this, yeah, you're not getting a new phone. I have an iPhone 11 right now, so
Doug Draper 16:32
it works. It does a phenomenal job. I can hold it in my hand do what I need to do with my thumb while I'm holding it. So, yeah, I It's cool. It's a novelty. Hardware has been a strong suit of Apple, right? Look at all the the gadgets that they've come out with. So I don't think it's going to be as crazy as the is the iPhone is, but there will certainly be some folks early adapters, if you will. It'll check it out.
Pete Mento 17:02
Okay.
Doug Draper 17:03
All right,
Pete Mento 17:03
it's not enough for you, is what I'm hearing.
Pete Mento 17:06
No.
Pete Mento 17:06
The thing about that foldable phone that gets dug giddy,
Doug Draper 17:10
no, no, so,
Pete Mento 17:13
all right, man,
Doug Draper 17:14
yeah, yep, yep, iPhone 11. I told my kids that the other day, and they're like, what an iPhone 11. I'm like, it's about the same size as yours, you know, I got it right here, about the same size. It works, and it's all I need.
Pete Mento 17:29
All
Doug Draper 17:30
right, man, so this or that Travel Edition. Are you ready?
Pete Mento 17:34
I'm ready. Let's go.
Doug Draper 17:35
All right. When you land in a new city, do you rent a car, or do you just use Uber?
Pete Mento 17:40
I love renting cars, but Uber has become more cost effective for me lately.
Doug Draper 17:45
Yeah, okay, when you're at a hotel, do you unpack and actually put stuff in drawers or anything, or do you just live out of your suitcase?
Pete Mento 17:55
I unpack my suits and my dress shirts and my, you know, if I dress clothes,
Doug Draper 17:59
but
Pete Mento 17:59
everything else just stays in the back.
Doug Draper 18:01
Got it in that hotel. Do you help yourself to all the free stuff, like shampoos and lotions and stuff like that, or you just use it and leave it behind.
Pete Mento 18:11
Use it, leave it
Doug Draper 18:12
behind.
Doug Draper 18:13
Yep, yep. Rental Car, since you're a big fan, do you refill the tank? Or, like, I don't have time, and you just deal with the cost to refill it and have them
Pete Mento 18:22
do, oh, I always refill it. I'm not going to stick my company with a massive bill like that.
Doug Draper 18:26
Yep, yep. Oh, nice work.
Doug Draper 18:30
Hey, do you ever when you're traveling? Drop the term, hey, listen, I travel a lot, quote, unquote, in order to get what you want. If things are are not,
Pete Mento 18:39
no, which I remember. I do have ridiculous status. I have the secret Marriott status, right? Like I I never say anything, and the reason I do that is I remember my young days, right? With air freight. Airlines didn't care, and it wasn't their fault. The guy I'm talking to, it's not his fault. Whatever's gone on, gone on. So I'm, I am shockingly under well understood. Like, I I'm really cool with people at a desk when something goes wrong, they don't want to deal this crap either. So I'm very open minded. Like, I'm pretty cool about it. Like, I never say,
Doug Draper 19:15
gotcha. Speaking of issues, are you you try to resolve your flight issues through an app? Or do you like I need a person I want to go to a desk.
Pete Mento 19:24
Recently, it's all app driven, buddy, because it's done a much better job of getting me what I want. When that doesn't work, I call my assistant, and then she turns into Mama Bear and takes care of everything for me, so I don't have to do that
Doug Draper 19:38
anymore.
Doug Draper 19:38
Doug, nice, cool. All right, just a couple more in your hotel. Do you want to have a hotel view? Or I don't care. Just give me a clean room and leave me alone.
Pete Mento 19:47
I don't care. I just every room is the same when your eyes are closed and you're asleep,
Doug Draper 19:53
buddy, gotcha All right. Hotel amenities, gym, free. Back breakfast at a. The bar in the hotel, any of that stuff you're like, I just want to go up to my room, close the door and leave me alone.
Pete Mento 20:05
I want a private lounge, like the Marriott lounges, so that I can get my sodas and not pay for breakfast. That's super important to me. And they have to have very good internet, or I will be aggravated.
Doug Draper 20:19
Gotcha. All right. Here's the last one. When you're in a hotel room, you wouldn't Are you into movies, sports or the news feed that you have in the background when you're
Pete Mento 20:31
working, I stream, there'll be something on, like, I'll set my Netflix up on it, or whatever, and I'll put something in the background just as noise while I work.
Doug Draper 20:40
Got it cool, all right?
Pete Mento 20:42
You Doug when you walk into a hotel room, what do you do with the thermostat?
Doug Draper 20:47
Wow, that's a great question. Well, it depends on I don't like a cold room, so I check it when I came here yesterday. Damn, this room's cold, and it was only at 67 to me, that to me, that's a little chilly, so I turn it off until the temperature gets to the level that I want.
Pete Mento 21:06
Yeah, I usually spend over 200 nights a year in a hotel. So I can say that over the course of my life, I've spent almost 11 years in Marriott properties, and I can probably count on two hands the number of times I've turned up the thermostat, it's the exact opposite. I want my room like a morgue. I turn it down as low as it will go, and I leave it there. But so that's one big difference with you
Doug Draper 21:32
and I, all right, good deal. Oh, so that's halftime, my friend, that's it. Cap logistics.com, check them out. We're glad they're supporting the show. Topic number two for you, Pete, what do you
Doug Draper 21:44
got?
Pete Mento 21:44
Well, the the White House has gone to Beijing buddy. We have, we have Mr. Trump and his whole cadre of, God, I don't even know what to call them. Mean, some are advisors. Some are just like, like, Elon Musk is going right the head of Taiwan apparently tried to go, but got told no one of the largest manufacturers of semiconductors whose Taiwanese is going like, we brought the whole entourage, you know, it's like an NBA basketball player with security and all their friends and a couple of rappers and a UFC fighter that they know from Applebee's everyone's going to Beijing, and this, this meeting is between the US and China to try to understand, honestly, what the next 10 years are going to look like, but more importantly, what the next two are going to look like while Mr. Trump is still in office. And this is going to be a very, very big meeting. But what I don't think is being spoken enough about is just how little we're probably going to get out of this. There's going to be a lot of talk about trying to hype up what will come out of this meeting with China, but most of it is probably either never going to happen or it's not going to be that impactful. So the early reports are that the US is going to ask China to invest a trillion dollars in American manufacturing, trillion with a T now, you can pledge whatever you want, but if you actually do it, that's what matters. And China has a long track record of saying they'll do one thing and doing another. Also, any of those investments are probably going to run into a brick wall of American regulations. There's a lot of states in the US that cannot have Chinese owned land they I mean, there's a number of them, but they can't actually operate within that state. And also, I think something big that will come out of it, I think that China is going to get a concession from the US to allow for Chinese automobiles to be sold in America. That's just from speaking to some people that are close to the source. So I will be, like a lot of people in the trade nerdery community, I'll be watching what happens on Thursday and Friday, very interested, but at the same time. You know, I've dated this girl before, and she says she's going to do stuff, but ultimately she will break your heart. So I'm just telling everyone don't get too fired up about what's spoken about on Thursday or Friday. Yes, pay attention to it. Parts of it will probably happen, but for the most part, but I think we're going to come out of this with some big promises and very little follow through.
Doug Draper 24:08
You pretty much took all the words right out of my mouth, right? You come with the big you know, there's strength in numbers, so to speak. So the entourage that's coming, Elon Musk, Tim Cook, are there, you know, I think that the pitches open up your market to us. Maybe the reciprocal will be BYD. I think that's the big brand that everybody's talking about coming over here. I don't know if we're going to get the real, true story about what's happened. I can tell you for a fact, it's going to be spun as we won, right? Because there's always a winner and there's always a loser in the mindset of the of the administration, and so I guarantee that we're going to come away and be told that we were the winners, but to your point, their pledges, and if that really comes to fruition or. Not, who knows. You know, it's kind of like when China said, we're no longer going to buy agriculture exports and soybeans, and they came back and said, Okay, well, we'll go ahead and buy a percentage. None of that really transpired. You know, when, when they shut off the initial purchase that was like the big purchase order. You know, the seasons happening, the crops are ready to go, and they didn't buy it, and then when they came back and said, All right, we'll buy some. That was pretty minimal in the big picture, so it'll get spun that, you know, we won, because there always has to be a winner and a loser, but there won't be a lot of substance around
Doug Draper 25:38
it. A friend of
Pete Mento 25:39
mine is a college professor. Put it this way, Doug, you said, Imagine the divorce single dad who says, Hey, we're going to Disneyland this weekend, right? This guy grew up in LA Disneyland this weekend. Like, hell yeah, we're going to Disneyland. And then, you know, he comes and picks you up, and he's like, listen, can't do Disney I know we're all very upset, but we are going to go to Sonic and get corn dogs, and then I'm going to take you to the comic book store. It's a win, right? It's a win. And then you go home, and you're like, I went to the comic book store, yeah? But it wasn't Disneyland, dude, right? Big, big promises. It's very, very hard to force two countries of this size to follow through what they say they're going to do, yeah? So just get ready for the divorce, Dad weekend. Brugh,
Doug Draper 26:23
yeah, I love that. That's a great analogy, because it's so true. So alright, so I'll wind it up with, I guess the for lack of a better term, call it the plastic shock, meaning the chemicals. This is related to the Strait of Hormuz, the crisis, the fuel situation that we're in right now. So we spoke about, oh my gosh. You know, oil is not exclusively gasoline. That makes the headlines for sure.
Doug Draper 26:52
It's
Doug Draper 26:52
easy to take a picture of a gas of the cost of gas at a gas station, and it's splashy and draws attention, but the petrochemicals makes pretty much everything that you and I use, specifically plastics and things of that nature that is starting to come to fruition as a challenge out there in in problems. So a couple of things that I've read about in the last couple days. So to your your favorite beverage, Diet Coke. Apparently, in India, 100% of it is sold in cans. So obviously the cans and the manufacturing of aluminum is being problematic. So the can situation, that's what they put the Diet Coke in. That's how their supply chain is set up. That is problematic. I heard that they're auctioning off cases of Diet Coke. And Diet Coke is is the drink of choice. It's not necessarily only Diet Coke issues. It's all it's all soda, but Diet Coke is very popular over there. This one in Japan, they changed the potato chip bags to black and white ink only. I just read about that one. And then obviously there's been talk from Whirlpool appliances. You open up your dishwasher, a whole lot of plastic on the inside refrigerators. All of that starts to come. The crazy thing is the medical industry. Think about how many medical devices are out there that are fabricated with plastics and derivatives thereof, that could start to impact insurance rates, right? Hey, this little widget that's going to go into your leg to make sure your knee works. Well, yeah, that just doubled in price, and so your insurance rates and premiums may come in. Who would have even thought that that would be a potential I'm not saying it's going to happen, but we are seeing plastics really taking a hit, and there's a lot of medical devices. So anyway, I think that if you had your marketing or your supply chain strategy as just in time, right? You're going to have a hard discussion in the boardroom with the C suites, because you flip into just in time versus just in case, right? We've used that term before. You're going to be in a bad spot with some of these challenges now coming through, petrochemicals and how that's being impacted.
Pete Mento 29:20
Well, the two that I always bring up Doug one is, look at how you and I are dressed right now, like your shirts made of advanced materials, your hoodie that you've got on right now, there is some type of plastics because there's some degree of other, you know, polyester microfibers. Those are plastic derivatives. So what you're wearing right now, one of the things that makes it so comfortable, gives it the stretch, the resilience in that stretch is actually derived from oil. And people don't really think about that, right? The colors that are used in the dyes that are used, there's a certain degree of plastics that are used so that it sticks and holds the fabrics that we have that's going to make clothes more expensive. Folks don't think about that. Them. And the big one, which you and I have talked about in the past, fertilizer. Fertilizer is a derivative of petrochemicals. It is about to go through the roof. I was speaking at a conference last week on on agriculture. Everybody was talking about it California. No one knows more than Doug, because he spends a lot of time in this part of the world, but California is really a hotbed for certain agriculture activity, not the least of which is almonds. And they're concerned about where the price of that's going to go. That's going to be for almond milk and other things that almonds are used for, not to mention cheese, dairy and wine, the amount of wine that is consumed in the United States. A lot of fertilizers are involved in that, in this production, but it's the little things. It's like you said, it's that $11 part in your Volvo that you need that's now going to be 25 bucks. It's the you know, it's every little thing. Look around your house. Everyone look in your office right now, how many things have some kind of plastic associated with it? We've just greatly increased the cost of that, and as you begin to pile that all up, I think it has some real serious inflationary pressure. And once the situation's resolved, those costly materials are already in the manufacturing process, right? So, hey, the fuel situation is back under control. Well, all this expensive fuel is already in the supply chain, right? All these petrochemicals are already in the manufacturing process, is what I meant. So it's going to take a while to have that reset itself, agreed. Buddy, agreed. Well, that's four topics and a half time from your two favorite nerds on global trade this week, we want to thank our friends at CAP logistics for their unwavering support. We really do appreciate everything you do for us, check to check them out of capital, and like we say every week, what's happening in global trade? We'll be talking about it on global trade this week. Thanks partner. See you next week. Okay, take care.
Doug Draper 32:02
You.
Transcribed by https://otter.ai