25
September
2006

China’s flower industry0

The fresh-cut rose importing business has long been a Miami story, with Colombia and Ecuador being the providers.

Recently, our company, WorldCity, focused one of its monthly Connections events on Africa, and learned of Africa’s increased interest in the fresh-cut flower business, something that we had written about in an earlier issue of WorldCity. Now, according to a New York Times story, China wants in on the act as well. (We had also reported on China’s nascent flower industry in that same article.)

Here’s a link to the New York Times story.

The basic points were that the industry, being developed in impoverished southwestern China, was being supported heavily from Beijing, with loans and infrastructure imporovements, and that China, not suprisingly, can undercut the cost on the global market significantly. In addition, the area where the industry is being developed is an entry point for heroin from Myanmar, and there is fear of Islamic fundamentalists becoming influential there as well.

Roses fly better than most flowers — carnations cannot be packed as tightly, for example — but do have a limited life. The most likely entry point is Los Angeles.

“Our plan is to become the biggest flower producer and exporter in Asia in 10 to 15 years,” and possibly the world’s largest after the Netherlands, the deputy chief of the Flower Association, a provincial government agency, told the New York Times.

 

1
September
2006

People are precious but cargo is too0

UPS, like FedEx, appears to be putting contentious negotiations with pilots behind it. Pilots at both airlines are apparently getting nice bumps in pay and total benefits, particularly when compared to their brethren who fly people for a living.

According to a Financial Times story, average pay for UPS pilots, who are among the highest paid in the industry, is $175,000. Think about that the next time you complain about only getting peanuts and a soft drink on your passenger flight. Your pilot might be thinking moving boxes offers far fewer headaches.

The story goes on to say that the gap between cargo piliots and passenger pilots is increasingly narrow. The passenger side of the business has been struggling for years, and pilots have been laid off and asked to take pay cuts.

UPS has been negotiating for four years. FedEx announced only about a week ago that it had apparently reached accord with its pilots after a couple of years of talks.

What’s behind it all: global trade is big business. U.S. trade alone last year totaled more than $2.7 trillion.

31
August
2006

Sky warriors, take note: Prices will come down but not that elbow next to you…0

Clipped this one from an email from Business Traveler magazine’s email… “Since the beginning of the year, airfares  have been on the rise, fueled by record oil prices, reduced seating capacity and a surge in demand. Last week, United raised business-class fares $5 each way or $10 per round trip. American Airlines and Delta matched the fare hike, but no other U.S. carriers followed suit. The result: United, American and Delta rolled back the increase. In the last two years, the airlines have successfully raised fares industry-wide 21 times — and failed 17.” I, for one, liked having the plane virtually to myself but understand that airlines need to make money. But I will take the crowds over paying for empty seats with big increases in fare prices. People who fly long distances might see it differently.