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Zorro

(15,740 posts)
Sat May 2, 2020, 03:05 PM May 2020

SUVs are left parked on ships off L.A. ports as glut of unsold autos grows

The length of almost two football fields, the cargo ship Jupiter Spirit arrived in Los Angeles’ harbor on April 24 after an almost three-week journey from Japan, ready to unload its cargo of about 2,000 Nissan Armada SUVs, Rogue crossovers and Infiniti sedans in a quick, half-day operation.

But when the ship, operated by Nissan Motor Co.’s freight arm, got about a mile offshore, its captain was ordered to drop anchor. And there the ship remained for almost a week — a floating symbol of an unprecedented logjam as nearby storage lots covering hundreds of acres overflowed with vehicles that Americans suddenly have little desire to purchase.

There are gluts of all shapes and kinds forming in the U.S., a testament to the scope of the economic pain the coronavirus is inflicting. Slaughterhouses are killing and tossing out thousands of pigs a day, dairy farmers are pouring away milk, oil sellers were paying buyers to take barrels off their hands last week, and now, brand-new cars are being left adrift at sea for days.

For the auto industry, the crisis has left cars gathering dust on dealer lots, dealerships shuttered, auction prices slipping and tens of thousands of workers laid off or furloughed. April U.S. sales plummeted 54% for Toyota Motor Corp., 47% for Subaru Corp. and 39% for Hyundai Motor Co.

https://www.latimes.com/business/story/2020-05-01/auto-glut-parked-on-ships

The effects of this pandemic will be felt for years to come. We are just at the beginning of this span of economic disruption.

9 replies = new reply since forum marked as read
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SUVs are left parked on ships off L.A. ports as glut of unsold autos grows (Original Post) Zorro May 2020 OP
Where I live in San Francisco I'm seeing a lot of those freight carrying ships parked out in the bay kimbutgar May 2020 #1
Port of Los Angeles/Long Beach looks the same way. Plus it's clogged with cruise ships. SunSeeker May 2020 #5
I predict that... Newest Reality May 2020 #2
I have been saying that for years. murielm99 May 2020 #4
Who has the money for a new car right now? Ohiogal May 2020 #3
Who needs a car if they have nowhere to go? SunSeeker May 2020 #6
financing is insane now --- 0% APR for 84 months in some cases aikoaiko May 2020 #7
I need a new car very badly. Initech May 2020 #8
My son and his fianc had their cars stolen Freddie May 2020 #9

kimbutgar

(21,163 posts)
1. Where I live in San Francisco I'm seeing a lot of those freight carrying ships parked out in the bay
Sat May 2, 2020, 03:14 PM
May 2020

The port of Oakland is not offloading freight either, and ships crews are quarantined.

SunSeeker

(51,574 posts)
5. Port of Los Angeles/Long Beach looks the same way. Plus it's clogged with cruise ships.
Sat May 2, 2020, 03:34 PM
May 2020

The horizon is littered with long tankers and tall white cruise ships. The cruise ships being anchored here really pisses me off. They escape paying US and local post taxes by claiming tax havens like Panama and the Bahamas as their home ports. It is painfully obvious the US, and Los Angeles in particular, is their home port. And it is our taxes (my taxes!) that are maintaining that port for them and paying for the harbor patrol that keeps guard on their ships to keep them safe. Plus we're giving cruise ships billions in bailouts.

Newest Reality

(12,712 posts)
2. I predict that...
Sat May 2, 2020, 03:18 PM
May 2020

I predict that we are going to be seeing many cascading system failures. There is a short lag before that, but there are signs.

The reason? Neo-liberal policies. No fat for the lean years. If it is not profitable, it will not be done and that includes stocking up, storage of supplies, prevention, responses to crisis, etc. It doesn't fit in a profit-only model which revolves around the economy and its owners, not serving, protecting and providing for the people...oh, I mean consumers, (what a bullshit term). All of that is going to show up based on the often overlooked, complex array of interdependence of everything.

This is when you see the egregious faults in the system as it is. Should we rinse and repeat that? Much of what is to come will stem from a gamed system that does not exist as reciprocally as we would like to imagine. The system failures will grow and could even become severe. It will be a time of austerity and great change, at least until we can get a new Administration and begin to work to repair what has been broken for so very long, (decades actually) and create a more adaptable, equitable and prepared one so that future emergencies, and you can count on new pandemics, won't be so devastating. Ah, we billions into the military as a means to protect ourselves from foreign threats, but we have little or nothing for an internal crisis? Come on! Give me a break. That is not acceptable at all. That's an embarrassing tragedy to say the least, especially in a country with so much wealth for the few.

We are CITIZENS of this country and I think we have been pushed into a box with the "consumer" label on it. How often do we hear the word citizen and other terms that indicate that we are human beings; living, feeling entities? That is, to me a significant difference and might be an important thing to consider as we reboot the machine. Same program, or do we swap it out for something real, compassionate and anthropocentric rather than a machine for the wealthy and their, (obviously they are the owners) economy?

We are going to learn what we need to do about this, (it is essential) but it will be the hard way and it didn't have to be.

murielm99

(30,745 posts)
4. I have been saying that for years.
Sat May 2, 2020, 03:21 PM
May 2020

We are citizens. Consumers should be a term that comes far down the list of who we are.

People are not doing much consuming now, are they?

aikoaiko

(34,172 posts)
7. financing is insane now --- 0% APR for 84 months in some cases
Sat May 2, 2020, 03:44 PM
May 2020

I'm waiting to hear what my university's furghlough plan is before seriously considering a new car.

My 15 year old Volvo is good for another 5 years or so, but these are incredible deals.

Initech

(100,081 posts)
8. I need a new car very badly.
Sat May 2, 2020, 04:02 PM
May 2020

I just found out a rat attempted to make a nest in my engine. I will be looking again in July when there should be news of the vaccine progressing.

But how are cars getting sold if there's nowhere to go?

Freddie

(9,267 posts)
9. My son and his fianc had their cars stolen
Sat May 2, 2020, 04:09 PM
May 2020

From their apartment complex parking lot, early April. Boynton Beach Florida.
Cops told them that most of the time it’s teenagers who drive the car for a while and then abandon it. They checked out buying new cars and found out that dealers can’t give them away right now. Could have gotten amazing deals with 0% financing.
Police found both the cars, both with some body damage (fixable). My son’s car was involved in a drive-by shooting and was impounded for a while. Something to tell their (eventual) kids.

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