Archive for the 'Pacific Rim' Category


Will the Latest Middle East Upheaval Disrupt the Asian Economy?

As the Middle East continues its upheaval, The world’s eyes are now focused on Israel and its relationships with The Palestinians and others in that region. Those of us in East Asia can’t help but wonder what impact it will have on us. With the exception of some inevitable growing pains that accompany a strong economy, the Pacific Rim is enjoying prosperity. We would hate to have the rest of the world’s disruptions inhibit our growth.

It would seem that unless Iranian and Israeli relations devolve into outright war, it is no more likely to have an impact on Pacific prosperity than did events in Egypt and Libya. And the Egyptian situation included a trade route as important as the Suez canal.

The Pacific region has been blessed with prosperity because the economies that make up the area were determined to do so. Less than five years ago, most of the world was plunged into a recession. We brought ourselves out of it, despite the fact that classic economic powers like the U.S. and Europe continue to lag behind.

We have withstood one of the world’s worst natural disasters happening in Japan, one of our most important but vulnerable economies. We have withstood the falling like dominoes of Arab countries in the region. It will take more than this latest controversy to slow down this powerful region.


President Hu Jintao Visits The United States

This week, Chinese President Hu Jintao visited several American cities. The two super powers have had a cool relationship, and this visit signals a significant warming of that relationship. If only for the mathematics of it, their improved relationship helps us all.

A couple of charts accompany this blog entry. They show the relative size the U.S. and Chinese economies. Clearly, they dominate the world’s economies. In fact, if the U.S. were a mere 1% larger, it would be as if we added a whole new economy the size of Singapore to the international marketplace.

Over the last few years, many of the largest economies on the chart have been stagnant in their growth. Even as Asian economies have enjoyed substantial growth, the lethargy of those large economies has held the world back from where it could be today.

We applaud both China and The United States for taking this step. We are anxious for the day we can report that all of the world’s economies are growing comfortably. We  hope that some day we will look upon the January 2011 visit of President Hu Jintao to America as the day the world’s economy started to grow again.


Asian Commerce – Strong and Comfortable

Asia understands the value of commerce.

One of the most confusing, yet comforting things about our Asian business is the nature of the Asian marketplace. The economies in the region go from incredibly large like China, to small, as in North Korea. Some are dynamic, with growth rates nearing fifteen percent, and others working just to keep the economy moving forward.

Some currencies struggle with inflation, some have infrastructure issues that mitigate even the most friendly trade policies. Regulation, politics, customs and language all bring challenges to commerce in the region.

The advantage of this wide mix of circumstances is that they all blend together to form a strong and consistent picture. The region’s growth is undeniable, and it is fueling the revitalization of the U.S. and Europe. Sure there are stock market rises and falls on each exchange, but for every bad day in Japan, you will find positive days in China and Vietnam.

We can see how each country works to solve its individual growing pain. We can also see how each economy learns by what its neighbor does to combat its issues. We see each country now face its own challenges with the benefit of the experiences of other countries, and so far, it is serving the region very well. It has become a comfortable and inviting place for commerce.


The Man Who Made the Asian Economic Boom Possible

Malcolm McLean, The Trucker Who Revolutionized Shipping

A lost hero in the Pacific economic resurgence is the man who revitalized shipping. A generation ago, exports would have to be loaded onto trucks that sat and waited at rail yards, where their cargo would eventually be unloaded and repacked onto box cars to travel by train to ports. Once there, they would again be unloaded and repacked as sea cargo. Ships would carry the loads to the destination port where the whole process would happen again in reverse.

Malcolm P. McLean was a truck driver, wasting hours waiting for his turn to have his load of cotton removed from his trailer to be repacked on a ship, so he could carry the empty trailer back to wait in line where he could have another load brought into his trailer again.

It occurred to Malcolm that if his trailer could be removed from its wheels, he could leave the “box” at its destination, where it could be placed, as is, onto a train or ship to continue its voyage. The process could be standardized so that the containers could be economically and quickly put in place and sent to the final destination, as is.

The difference between Malcolm and anyone else who may have had the same idea, is that Malcolm acted on it.

He created the container shipping industry. It is faster, less expensive, more secure, less labor intensive, and more reliable than the way shipping had been previously conducted.

His invention has made our business possible. Read more about how this visionary revolutionized shipping, and therefore worldwide trade by clicking here.


Shipping Container Shortage Raises Prices

It is called supply and demand. The emphasis is on demand.

China‘s emergence as an economic powerhouse has put a strain on the infrastructure that supports economic activity in the region. One example is the shortage of shipping containers the activity has created. It has become one of the most significant challenges facing the region’s shipping industry.

Despite China’s occasional growing pains, it is clear that the country is destined for decades of economic growth. A country that size, moving forward is a force hard to stop, and one that will seek plenty of help in feeding that growth

Investing long-term in the region’s success is a certain way to ensure your own success. We see the best way to do that as purchasing a part of the infrastructure that will carry that growth.

The region needs shipping containers. We know, they ask us for more all the time. We can’t buy them quickly enough on our own, and look for others who see the region the way we do. We seek people who want to profit from the area’s success. We have the shipments to ship. We need your containers to put them in.


Invest in the Assets that Do the Work

Invest in jets for glamor. Invest in shipping containers for high income.

Fractional Jet ownership is a hot investment right now. We at Pacific Tycoon applaud the concept. The way it works, investors purchase planes that build a fleet. A leasing party then leases out the planes for charters.

It is great way to capitalize a business with such high overhead. Investors gain from investing directly in an asset that brings in revenue, the leasing company has a larger fleet to work with, thereby commanding a greater share of market. Everybody wins.

The only concern is that private jets are a rather delicate investment. Their maintenance and liability coverage are expensive. They take expensive manpower to operate, and there is a lot of time when jets are not gathering revenue. Add to it, the fact that private jets are among the first luxury items to suffer when an economy stalls, and one can envision that it may be a difficult investment from which one might profit at times.

Pacific Tycoon has taken the best parts of that business model, and applied them to a more practical and lucrative offering.

All successful economies share the movement of freight as a component of success. So instead of investors buying luxury jets, Pacific Tycoon offers them the opportunity to buy shipping containers. They may not be glamorous, but they move from port to port, picking up cargo here and delivering it there. They are rarely out of use, they last twenty years with very little maintenance, and whatever manpower is used, is shared among dozens of other containers. They may be a little boxy in design, but they never go out of style either.

They are built of steel and profit. So next time Fractional Jet Ownership companies boast of their success, consider how successful our investors are, given the advantages of cargo vs. luxury jet.

Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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