Subscribe to our free, weekly email newsletter!



Debt deal is done. Now what?

By Jeff Berman, Group News Editor
August 01, 2011

Now that there appears to be a tentative deal on increasing the federal government’s debt limit in place, I am going to be an optimist and ‘assume’ this is a done deal.

Why? Well, for one reason, reading about all the partisan bickering and related back-and-forth nature of what led to this point is draining to say the least.

And aside from that, it spells relatively good news for the economic engines that drive our country at a time when we can least afford to lose any signs of momentum whatsoever.

Failing to increase the debt limit, as mentioned in this space, would not only have been bad for the economy, it also would have been bad for supply chain operations.

A negative credit rating not only would significantly impact consumer patterns, it could have potentially wreaked havoc on inventory management and demand planning processes for both shippers and carriers.

At any conference you attend these days, you usually cannot go five minutes without hearing the word visibility and how important it is to have in when approaching the myriad facets of supply chain management.

What’s more, failure to agree on increasing the debt limit in any way could have set us back to 2008, when Wall Street crashed and put us in an untenable situation entirely.

Things are not as bad now, but, by no means, are they all that great or even that much better. But you don’t need me to tell you that.

Another thing failure to agree on increasing the debt limit would do is to negatively impact the already limited amount of credit available to do things like reinvest in businesses so carriers can by more trucks, rail cars, and containers, and shippers can increase warehouse space, and add personnel, and also allow both sides to grow through expansion and acquisition at a more fervent pace.

I am trying not to get too far ahead of my self, but these days good news—or even a good sign of economic positivity—can be hard to come by. So I will take last night’s news as a good sign….for now.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Congested U.S. port terminals, harbor and over-the-road truck and driver shortages, slower trains and longer rail terminal dwell times due to increased domestic rates have not only disrupted service but also driven intermodal rates and cargo handling costs up sharply.

Southern California shippers are getting a break on container dwell expenses for the next ten days as the Port of Long Beach announced that it had added an extra three days to the time that overseas import containers can remain on the docks without charge.

The long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA