Samuel Shapiro & Co.

Given the housing market debacle, the contagious financial and banking crises, and the global economic decline, the incoming Obama administration has quite a lofty to-do list. The world is holding its breath. The indirect effect on trade and the transportation industry is painfully apparent. With unemployment rising steadily, consumers are gun-shy about purchasing; importers, frightened by the media and fading consumer confidence, are depleting inventories; steamship lines, with their overabundance of capacity, are turning worldwide ocean freight pricing into a negotiating playing field; and shippers are purchasing cautiously and seeking more “neighborhood” sourcing to limit their financial exposure. Even more concerning is the reluctance of banks to lend — even to viable businesses — due to their own mismanagement. As if consumer and bank belt-tightening were not enough, Congress has enacted legislation — 10+2, the Farm Bill and Lacey Act amendments, and 100 percent scanning — that promises to inhibit trade with the United States. It also adds an unnecessary burden to our government and causes undue financial and administrative distress from business to consumer. Should these security and environmental initiatives come to fruition, they could further weaken an already fragile economy without substantial benefit. It appears at this point that the new administration appreciates the need for economic stimulus, investment in our infrastructure and job creation. Fortunately, it also seems that it and its direction are being well-received by our trading partners. This suggests a focused, multinational cooperation on solving the global crisis. While attention to security is here to stay, and while the Democratic posture has traditionally been more protectionist than free, I expect that, in time, there will be a less-onerous approach to security and a more aggressive, cohesive shift in direction to measures that will both stimulate the economy and facilitate trade.