“The Pharaoh dreamed of seven fat and beautiful cows and seven lean and ugly cows, and lo, the seven ugly cows ate the seven beautiful cows.”
The Pharaoh was dreaming of the economic cycle in ancient Egypt. We can make the correlation to today’s global economic climate as well.
The period of 2001 to 2007 encompassed seven years of steady growth in consumer spending, increasing container volumes, full ships and bustling ports. But 2008 will be remembered for market downturns, declining container volumes and decreased consumer spending.
While the next year or two will be trying economic times not only in the U.S. but for our trading partners as well, we don’t believe we will suffer seven lean years as ancient Egypt did. The fat and happy cows will return, although likely somewhat leaner.
Ports must continue to invest throughout the fat and lean years. We must provide infrastructure to accommodate a flow of goods demanded by consumers.
It takes time to build this infrastructure. The executive of a major carrier once asked me why it takes so long to deepen the harbor to 50 feet when his company can build an 8,000-TEU ship in eight months. Throughout the U.S., it is recognized that major infrastructure projects such as channel deepening or bridge construction take a minimum of 10 years from conception to completion.
We cannot be deterred from building for the future.