Inventories are Growing!

Over the past year car sales have decreased rapidly. Many dealerships have seen a complete halt in car sales forcing them to change orders for new shipments in mid-stream. The current state of the economy is most likely to blaim, but a reduction in car sales means more than just fewer cars being sold. The most noticeable impact can be seen by visiting Long Beach, California which is the second largest port in the United States. The port has become home to almost 10,000 brand new cars ranging in a varitey of brands. (Mercedes, Mazda, BMW, and Nissan) Car companies across the world are having to deal with a problem they haven't faced in a long time: gigantic inventories. Toyota alone has already leased six acres from the Long Beach Port and plans to lease more with no increase in demand for cars in sight.

Imports stocking up at Long Beach aren't the only problem. Over the past several months company that export cardboard boxes and paper to China have all but stopped their operations as a result of reduced production in foreign countries. As a result, paper and cardboard boxes are literally strown throughout the port waiting to be shipped.

A port standstill is perhaps the best picture of economic times and let me be the first to tell you there is nothing pretty about this picture.