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Speaker 1: Global business news twenty four hours a day, if Bloomberg

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Speaker 1: dot Com, the Radio plus Mobile Act and on your radio.

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Handquarters.

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Speaker 1: I'm Charlie Howlett. Stocks are lower. This something brought to

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Speaker 1: you by Herko and American industrial technology company with global

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Speaker 1: reach on the long history of disruptive innovation. To learn

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Speaker 1: more about her Cove, is it h u r CEO

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Speaker 1: dot com Slash Investors nav Stack ticker symbol h u

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Speaker 1: r C. Now let's head right over to the first

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Speaker 1: Word Breaking news desk for today's afternoon call. And here

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Speaker 1: he is Bill Maloney. Good afternoon, Charlie. MANU savages are

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Speaker 1: declining today, but are off their worst levels, with the

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Speaker 1: down currently down forty points, SP drop four and NAZACT

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Speaker 1: declines twenty three. The small cap six hundred is down

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Speaker 1: three points and the U S ten uels at one

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Speaker 1: point six to as the e C D downplay the

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Speaker 1: need for extra stimulus. This morning, German stocks fell point

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Speaker 1: seven percent back in the U S SB sector leaders

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Speaker 1: included energy, utilities and the financials. Real estate and technology

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Speaker 1: led to the downside down Transports game twenty four and

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Speaker 1: as a by Text Rise nineteen and the vix is

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Speaker 1: up by two percent. Down Leaders to the downside included Apple, Nike,

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Speaker 1: and IBM, while x On Mobile, Merk and DuPont Lad

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Speaker 1: and Jill News. Google is buying Apage for seventeen forty

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Speaker 1: per share in cash retail our tractors supply plunge as

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Speaker 1: much as seventeen percentage today. That's in Motion's two thousand

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Speaker 1: after earnings, while chest Speake Energy searched thirteen percent, as

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Speaker 1: the company said it sees an additional nine hundred million

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Speaker 1: in asset sales this year. Live in the first Breaking

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Speaker 1: News desk on Bill Maloney. Charlie all right, thank you

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Speaker 1: very much, Bill Maloney, And to hear live breaking news

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Speaker 1: over your Bloomberg Time Squawk squ a w K on

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Speaker 1: your terminal. I'm Charlie Pelton. That's the bloom Bread Business

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Speaker 1: Flash Busy's taking stock with Deatheimox on Bloomberg Radio. If

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Speaker 1: you happen to be waiting for any of your apparel

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Speaker 1: for Ralph Lauren or perhaps Michael Cores, indeed you might

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Speaker 1: have to wait just a little bit longer. Why because

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Speaker 1: suppliers such as Michael Cores and and Hugo Boss, as

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Speaker 1: well as Ralph, Lauren Marx and Spencer in the United Kingdom.

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Speaker 1: They're all scrambling to try to figure out how to

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Speaker 1: get their products to the actual customers because of the

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Speaker 1: bankruptcy of a Hudjen shipping company. This is South Korea's

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Speaker 1: shipping company and one of the largest in the world.

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Speaker 1: Here to tell us more about it is satishe Jendal.

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Speaker 1: He is the president of s J Consulting Group and

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Speaker 1: he joins us from Swickly, Pennsylvania. Satish, thank you for

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Speaker 1: being with us. All right. So, if I'm a retailer

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Speaker 1: and I am left hanging by Hunjin shipping companies bankruptcy,

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Speaker 1: what is the state of affairs? What what am I facing?

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Speaker 1: I'm facing a delay in the production of my products

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Speaker 1: that are dependent on some of those raw materials getting

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Speaker 1: to the manufacturers, and then I'm delayed with the products

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Speaker 1: finished months getting to my distribution centers or my stores,

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Speaker 1: and uh I will be including a higher cost. Even

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Speaker 1: if I am using other shipping lines going forward for

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Speaker 1: the products that I will get in the next few months,

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Speaker 1: their rates are higher, So the cost is going to

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Speaker 1: be high for everyone, even if your cargo is not

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Speaker 1: on those ships, And I guess it's it's there's a

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Speaker 1: lot of there's so many suppliers along the way to

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Speaker 1: get to Nike, Hugo, bas some of these big companies.

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Speaker 1: So that's I guess why this is so complicated. But

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Speaker 1: what about the alternatives in terms of other shipping companies

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Speaker 1: or flying in a plane or you know, starting to

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Speaker 1: move things around otherwise, those are all options that just

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Speaker 1: at UH. One has to be aware that other shipping

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Speaker 1: lines UH can't fill in a void like this in

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Speaker 1: such a short time. There is an adjustment period that

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Speaker 1: has to be understood. Plus, if you want to fly

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Speaker 1: on the planes UH, there are only few airlines that

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Speaker 1: have dedicated cargo planes and many of them are already

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Speaker 1: booked in spaces committed with other customers. So to get

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Speaker 1: that excess space, the game will be at a premium

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Speaker 1: and UH conna cause some disruption for everyone in the process.

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Speaker 1: But the thing that ship would need to realize that

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Speaker 1: they were the beneficiary of the over capacity and very

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Speaker 1: very low unrealistic rates and they should have expected that

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Speaker 1: someone is gonna go broke at those low rates. Now,

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Speaker 1: So teach there are vessels hygen shipping vessels that are

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Speaker 1: just anchored off the coast of Long Beach, California. For example,

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Speaker 1: Samsung says that they have goods on board those vessels

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Speaker 1: and if they can't move them, they're gonna have to

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Speaker 1: figure out new ways to get those goods into their

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Speaker 1: factories in Mexico in order to build refrigerators and washing

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Speaker 1: machines and so on. Is this, Uh, why wouldn't they

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Speaker 1: just dock? Is is there something about the ships not

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Speaker 1: coming into port that is meaningful? Well, no, I think

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Speaker 1: they will be able to dock, and tickets just being

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Speaker 1: able to talk to and correct a problem. The question

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Speaker 1: is do you have to gain get those containers unloaded,

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Speaker 1: and who's gonna pay for it? That is unclear. Well. Now,

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Speaker 1: it's interesting though, because the obviously a lot of these

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Speaker 1: big companies are lobbying their their their government officials. It's

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Speaker 1: happening in the US where one group, the Retail Industry

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Speaker 1: Leaders Association, is urging US Secretary of Commerce Penny Pritzker

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Speaker 1: and the Federal Maritime Commission Chairman Mario Cordero to intervene.

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Speaker 1: We've seen some last ditch efforts efforts by Hygiene itself

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Speaker 1: to provide more money, and then South Korea's ruling already

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Speaker 1: is asking the government to offer about a hundred billion

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Speaker 1: one of low interest los. How likely that all forces

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Speaker 1: will come together and say, yeah, we just better make

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Speaker 1: sure they stay on their feet long enough and and

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Speaker 1: don't go down to cause so much damage to so

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Speaker 1: many entities. You know, even if they're able to make

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Speaker 1: it happen with their guard works interest, the amount of

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Speaker 1: time it would take is not in the interest of

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Speaker 1: The better solution would be for the customers whose products

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Speaker 1: are in the containers on the ships that could dock

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Speaker 1: on the ports of l A and Long Beach has

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Speaker 1: agreed to pay for all the docking and the unloading

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Speaker 1: of the containers, and that would be cheaper than flying

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Speaker 1: the products around and take responsibility for covering the cost.

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Speaker 1: That would be a faster and a cheaper solution. So teach,

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Speaker 1: is anyone going to benefit from this? Perhaps other shipping

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Speaker 1: companies where the other shipping companies are going to benefit absolutely,

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Speaker 1: But in addition to that in this country, in US,

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Speaker 1: the truckers are going to benefit. Company like a Crossport

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Speaker 1: Services Group which has those seven six seven feet of faircraft,

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Speaker 1: they will probably manefest because some of those products will

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Speaker 1: then have to be moved faster to make up for

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Speaker 1: the last time. Alright, Satis Gindal, you have quite a handle,

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Speaker 1: quite an understanding the big picture and some of the

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Speaker 1: details that are so important to big companies. There are

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Speaker 1: suppliers around the world, as the Korean shipping company Hanjen

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Speaker 1: is filing for bankruptcy. Very important was stif said, they

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Speaker 1: couldn't expect those low shipping rates they were paying to

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Speaker 1: go for so long and not cause a bankruptcy from

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Speaker 1: someone they depended on. Very interesting. I'm Kathleen Hayes. Along

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Speaker 1: with pim Fox taking stock, this is Bloomberg. Bloomberg taking

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Speaker 1: Stock has brought to by the Jewish Communal Fund that

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Speaker 1: j c F donor advised fund is the smart and

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Speaker 1: efficient choice to manage your philanthropy called two one two

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