“Mexico Is The New China” screams a headline in Wealth Daily, citing the Mexican Exchange Traded Fund (NYSE: EWW) compared to China (NYSE: FXI) and Brazil (NYSE: EWZ), and also noting India and Russia are well off their highs by adding:
     “Face it BRIC is dead.
     “But the stock market of our good neighbor to the south is making new highs,” Wealth Daily said.
     Right now, the USA is Mexico’s biggest trading partner, with 80 percent of its exports via more than 44 free trade agreements.
     Mexico is the U.S.'s third-largest trading partner and Latin America's second largest economy.
Mexico is close to the U.S. and a NAFTA member.
     “There is no high fuel cost/time delay from Mexico: You place an order, you get it in a few days. No muss, no fuss, and fewer pirated technologies. (It could take a month before you realize you got the wrong 50,000 widgets from China.)” Wealth Daily added.
     But when it comes to China, the deal goes a bit further.
     Despite what you might have thought, U.S. trade with Mexico suffers no tariffs, fees, duties, or trade wars.
     It's no wonder that Mexico (as pointed out in FT recently) is now the fourth-largest automobile exporter in the world.
     AlixPartners, a consulting company, reports Mexico has bypassed China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market.
     India is now number two, followed by China and then Brazil.
     As you read this, even Chinese companies are moving South of The Border down Mexico way to realize the trade opportunity and geographic proximity.
     While U.S. markets may think that they are buying “Made In China” from certain companies, the route keeping the flow of goods, now China-dominated, runs straight from nearby Mexico to heartland U.S.
     These commodities include cellular telephones, televisions, and all sorts of textile products and manufactured goods via maquiladora operations in various Mexican states like Chihuahua, Tamaulipas, and Baja that are created by China-based firms.
     Robbie Anderson, (left) President United Cargo, told FlyingTypers,“The most exciting news is: along with harmonization onto a single booking and tracking system effective December 1, we are launching our QuickPak International product on combined network.
     “This will offer our cargo customers in MEX access to United’s complete integrated mainline network worldwide.
     “Mexico continues to be an important market for United – with frequent service between Mexico City and five of our U.S. hub cities: Chicago, Houston, Los Angeles, New York/Newark and San Francisco.
     “In addition, Europe-Mexico and Asia-Mexico routings have long been strong and significant performers for United Cargo.
     “Most long-term predictions are optimistic about the growth of Mexico’s economy.
      “Also, as more and more companies consider the total cost of manufacturing and logistics, Mexico becomes a more competitive option as a manufacturing center. United Cargo looks forward to expanding our business in Mexico and the rest of the Latin America region in the future.”

     The growing importance of air cargo transportation and the growing influence of Mexico is at the top of the agenda for Eric Hartmann, VP South America & Europe at Aeromexico.
     “Mexico is very well situated between North, Central, and South America—a perfect hub for cargoes to and from the Mid West and West Coast.
     “At Aeromexico, Cargo Security is our first priority and we follow our local Mexican Authority Regulations as well as TSA and other regulating entities everywhere we fly.
     “We are constantly investing in training, IT, equipment, and facilities to support our efforts.
     “This year (2012) we opened a new domestic cargo facility at Mexico City International Airport and we are screening 100 percent of the cargoes transported.
     “We are also renovating our international warehouses in order to better meet the demands of our customers.
     “Foreign investment continues to pour into Mexico, investment that for sure will push continued growth between Mexico and the region.
     “At Aeromexico Cargo we are constantly striving to offer world class service from a world class country that is positioned to better its image and help the economy of the region get back in the right direction.
     “Air transport continues to be the safest, most secure form of transport between Mexico and the United States,” Eric Hartmann declared.
     In the meantime, Mexico’s president-elect proposed a government reorganization Wednesday that would put the scandal-hit federal police under the control of the department responsible for domestic security.
     Enrique Peña Nieto, 45, who takes office December 1, wants federal agents to be controlled by the Interior Department.
     Peña Nieto leaves no doubt he considers law, order, and economic growth the centerpiece of his effort as he takes the reigns of government next month.
     By streamlining the command process over the huge army of federal agents he also is seeking an end to a conflict with drug lords that has sapped government efforts while killing thousands on both sides of the law.
     His main reform proposals include allowing more private investment in Mexico's state-run oil industry, overhauling the tax system to improve government revenues, and liberalizing the country's labor laws to encourage job creation.
     Peña Nieto has promised to lift economic growth to about 6 percent a year.
     And the beat goes on.
     Today Siemens has set up a huge, high-voltage equipment plant located a few hours outside Mexico City at Querétaro, where they are assembling circuit breakers for electrical substations.
     Until recently, Siemens had done most of that work in India or China, but is expected to migrate it all to Mexico by next year.
     Word also comes that Siemens has chosen Mexico over China as the location for a new surge-arrester project.
Geoffrey Arend

he International Transport Workers’ Federation (ITF) in Europe rejoiced over Qatar Airways’ decision to withdraw as a major stakeholder in Luxembourg's all-cargo airline, Cargolux. The decision was termed a "victory" by OGBL, ITF's member union, which led a campaign to prevent a further QR takeover in CV, fearing loss of thousands of jobs.
    It should come as little or no surprise that Qatar has apparently picked up the ball from Cargolux and is off to find up a new game elsewhere, especially as reports surfaced last week that the QR/CV deal went south.
     Of all the carriers in business today, the Qatar story plays like a procedural television soap opera.
     Maybe that is what it takes to get an airline right: Qatar is surging forward and opening new stations and services at a furious clip worldwide, but just tracking the executive changes at Qatar since the company launched air cargo operations requires a scorecard.
     Things seem to change all the time over in Doha, and often in an instant.
     Much of the heat coming from Doha is generated by airline CEO Abdul Al Baker.
     In many respects the outspoken Al Baker follows in the tradition of many other airline CEOs like Branson, Kelleher, O’Leary, and even Freddie Laker; he tells the straight story in a slightly outrageous manner.
     He also has had mammoth funding and an almost unlimited ability to spend and build.
     The jury is still out on whether QR will be successful long-term, although handicappers seem to love that airline, but for now Qatar Airways is a big wind in the Middle East, and no one should or can afford to ignore it.

      Interestingly, the former CEO at Cargolux, Uli Ogiermann recently joined the big parade as the new QR Head of Cargo.
     Some thought Uli at QR Cargo might have foreshadowed a future integration of Cargolux into some kind of a Doha-led aviation enterprise, but apparently, as far as CV was concerned, that was never a possibility.
     So where does that leave Uli?
     This guy is among the best in the business, and Qatar is lucky to have him aboard.
     As to reports that CV is now up the river without a paddle—we think that scenario may be overstated.
     In any case, Cargolux has been a leader and innovator of things all-cargo for a large portion of modern air cargo history.
     After a period of adjustment and if knee-jerk decisions can be avoided, skies will get clearer in Luxembourg.
     And probably before long, the merry-go-round in Doha will start up again.
Geoffrey

     Vincent’s is an iconic seafood restaurant near JFK airport with the most wonderful sauce, shrimp, calamari, and scungilli—food so good, it’s stupid. It has always been the go-to eatery for JFK Cargo people smart enough to know about it.
     Vincent’s sits astride the Shellbank Basin, a narrow slip of water, and Crossbay Boulevard, in a location that has been a restaurant of some kind for 100 years.
     The place bears the same name as the fixtures in Manhattan and Carle Place on Long Island, but in our humble opinion has always been better under the careful eye of its owner, Jimmy.
     Vincent’s location on Crossbay Boulevard ensures a colorful crowd of Howard Beach locals is always mingling with the suits.
     Howard Beach is home base for some folks that used to think of JFK Cargo as their personal shopping mall, dating back to the days of the Goodfellas JFK Lufthansa Cargo heist, when some (insider and outsider) wise guys walked away with several million dollars in cash without a shot fired, let alone a suit wrinkled.
     But a couple of weeks ago, as Jimmy locked up late Sunday night after a unusually slow day, and the locals were battening down the hatches after reports that a monster, late-season hurricane was approaching New York City, Jimmy thought to himself:
     “Well, I guess we will lose a couple more days after the storm.”

     That was before a 20-foot wall of water roared down Crossbay Boulevard and up over the Shellbank Basin behind Vincent’s. The restaurant was immediately swamped as the ocean cascaded against the shores and dumped nine feet of brackish water against the walls.
     Last Thursday, one week before Thanksgiving, Jimmy sat amidst staked up chairs and tables, assessing the damage.
     “We are finished,” he said woefully.
     “Our place was completely wiped out with sewage-polluted sea water and now, just over two weeks later, we are waiting, as the mold takes over, for FEMA to give us the OK to rebuild.
     “Assuming that happens, as my wife had the foresight to buy flood insurance, we will rebuild, but that will most likely mean we will be gone until April 2013,” Jimmy said.
     No doubt Howard Beach and the Rockaways, from which you can see the aircraft on the ground at JFK International, took the major hit of Superstorm Sandy.
     The section of Crossbay Boulevard that runs down the center of Howard Beach, from Shore Parkway, to the Bridge, to the Rockaways and the Atlantic Ocean, is the mid-section of a depression in the land. Like a giant bathtub, it’s quite easy to fill, but more difficult to empty, and it is populated with commercial businesses and a canal on the east side and more businesses and a large family neighborhood on the west side.
     As the 20-foot surge from Hurricane Sandy came crashing in from the Rockaways, the bathtub filled from the Bridge to the Shore Parkway, taking out everything and ravaging the entire neighborhood of businesses and families.
     Three weeks later into late last Friday, flatbed trucks were taking out ruined automobiles and water-filled personal belongings; water gurgles out from doors, tailpipes, and kitchen cabinets as the trucks stop and go in traffic enroute to salvage yards.
     As Jimmy spoke of all the refrigerated seafood that was gone in an instant and hundreds of cases of beer and soft drinks with rusting metal caps, the depth of the destruction, loss, and deep sadness flashed across his face.
     But like many up and down Crossbay Boulevard, it is just better all around to plan ahead and focus on any bright points that may come to mind.
     “We always were talking of redecorating, but never could afford that,” Jimmy said.
     “I have thought of maybe opening up and selling a few items out of a trailer from our parking lot while rebuilding,” Jimmy said.
     “But I cannot cook here, so it would not work.
     “I was considering maybe cooking in my basement at home and bringing food here, but right now we just need to get our rebuild underway and that will take all our strength and imagination.”
     Jimmy says that the mold is getting so bad that he cannot stand even sitting inside the restaurant for too long without getting a headache.
     “Some other places up and down the strip have re-opened,” he said.
     “Russo’s, the big restaurant catering hall, took a hit in its sub-basement, but the upper basement kitchen and elevated ballrooms that host most of the big JFK events are still intact and I think open for business,” Jimmy said.
     Power generators dot the landscape and were in 24/7 useage up and down the strip until just a few days ago.
     At one end of Crossbay, where the Parkway drives off to the airport, a huge Waldbaum’s Supermarket is dark and appears completely destroyed.
     For everyone here, the collective shock continues as days go by and businesses and people struggle to regain some semblance of their former lives.
     “First FEMA needs to show up so we can get rebuilding,” Jimmy said again, looking around.
     “We will be back,” he assured.
Geoffrey

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