Once the Hoegh Osaka was returned to port, there was an investigation of the crisis while the cars were driven off the ship. There was speculation that the cargo was unstable when it left port. So what does this mean for the car manufacturer and exporter? Will the cars become scrap due to potential safety issues from damage unseen? Check out the links below to read more about this event.
Sunday, April 23, 2017
$53 million in Luxury Cars Lost At Sea
I came across an interesting story that was posted January 6, 2015 about how the cargo ship Hoegh Osaka, destined to the Middle East with $53 million in luxury cars, never completed it's delivery. Shortly after the Hoegh Osaka began its journey from Southampton, it began to list (tilt). This can happen if cargo shifts, or is unevenly loaded. The crew made a critical decision to run the ship aground not far from Southampton to prevent capsizing. Then, it was a race against time to stabilize the ship before being swept out to sea.
Thursday, April 13, 2017
Commodities Spike After Missile Strikes In Syria
Commodities like oil and precious metals have stabilized over the past several months after the uptick during the United States Presidential Election. But this has not been the case since the recent missile strike. Gold and silver increased by 1.07% and 1.02% respectively. Oil is up 1.26%. These increases were observed overnight after the attacks. Analysts suggest that even after the spikes in crude oil, the price per barrel should fall back below $50/barrel. As tensions grow in Syria and the Middle East, what will this mean for future oil flows?
Reference:
http://www.businessinsider.com/gold-silver-oil-price-reaction-us-missile-strike-syria-april-7-2017-4
Eric and Dustin
Reference:
http://www.businessinsider.com/gold-silver-oil-price-reaction-us-missile-strike-syria-april-7-2017-4
Eric and Dustin
Looking at the Middle East as a market to enter in the
retail aspect may be harder than one could imagine. Using the data collected from NRF, I was able
to determine that there were only three companies that have their origins in
the region. They hail from Turkey, UAE,
and Saudi Arabia. That’s three out of
the top 250 retailers globally (nrf.com). However, for two alias of Syria,
Russia and China, it might be easier for them to enter the market. Of the 250 global retail leaders, 13 of them
hail from these two countries. Still,
that is only 6.4% of the top retailers in the world that would even consider
doing business with these countries just based on global military
positioning. It’s an interesting topic
to see if the countries that back Syria are concerned with their economical
position or if it is strictly based on their weapons capabilities and positions
in the Middle East.
Source: C. (2017, January 16). 2017 Global 250 Chart.
Retrieved April 12, 2017, from https://nrf.com/2017-global-250-chart
Saturday, April 1, 2017
Though Syria and the middle east are known for their oil
exports, war and IDPs (internally displaced persons) have taken a toll on the
economy. From the report last updated in
October of 2016, we see how many of the many of the middle eastern countries
have been excepting or purposing taking funds from foreign entities including
the U.S. to help support the growing refugee issue as well as the rebuilding of
war torn areas. This no doubt will have
an impact on the areas exchange rate. I
know from personal experience when I was in Iraq in 2009, the Iraqi Dinar was
far less of value than that of the U.S. dollar.
I could purchase 5250 Iraqi Dinar for only $5 American. The situation at the time in Kuwait was
considerably better as $5 American would only get you just over 3 Kuwaiti
Dinar. Needless to say, I passed on it. At the time, Iraq was contemplating scraping
their current currency since it was still heavily associated with the former
dictator Suddam Hussain, and starting over.
Most of the primary concerns for these countries governments right now
is to focus more on the macroeconomics of the country to help combat the issues
that they face. The main driving force
for countries like Jordan and Lebanon are to keep schools and infrastructure
operational and to help with the rising demand for everyday essentials due to
the huge numbers that are flooding in holding refugee status. However, not all
is rosy for all businesses. For an example, National Commercial Bank (Ranked
#433 on the Global 2000) in Saudi Arabia. For them and other banks in the
Middle East, business is down considerably and are suffering cuts in credit
ratings due to a down economy.
Reference:
Thanks,
Eric and Dustin
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