The Cardboard Boxpocalypse and the State of the US Economy

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Odd Lots 46 min 10 speakers 7 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Jason Kelly 0:00
Have you ever wondered how Jesse Cole took the Savannah bananas from this? We
Alex Rodriguez 0:04
had a six million dollar failure last year. We're gonna have bigger ones as we go. To this, we've got shareholders, investors I've reached out to us regularly, and the answer is always no. Or why L Duncan would say this about a Netflix sports broadcast.
Francine Lacqua 0:17
Sometimes we're gonna take really big swings and we're gonna freaking whiff.
Alex Rodriguez 0:20
Then the deal is the show for you. It's a Bloomberg podcast hosted by me, Alex Rodriguez. And me, Jason Kelly.
Jason Kelly 0:27
We talk to the biggest names in the world of sports and business, including NBA Hall of Famer Tracy McGrady, on one of his biggest blunders. I think I've created some magical.
Unknown 0:38
Mm-hmm.
Jason Kelly 0:39
Well I struck out. And you'll even get some of my baseball hot takes. I've had owners tell me it doesn't matter, the game has to be fixed, it's broken. If we have to lock out the whole year, we will.
Alex Rodriguez 0:50
New episodes air every Thursday. Don't miss out.
Bloomberg Audio Studios 1:02
Bloomberg Audio Studios Podcasts Radio News.
Tracy Alloway 1:18
Hello and welcome to another episode of the All Thoughts Podcast. I'm Tracy Alloway.
Joe Weisenthal 1:22
And I'm Joe Weissentall.
Tracy Alloway 1:24
Joe, I am gonna put something on the table. And you tell me what it is, okay?
Joe Weisenthal 1:29
Go on.
Tracy Alloway 1:30
All right, here I go.
Joe Weisenthal 1:35
It is a uh this is so this is a corrugated, I believe, cardboard box and has tape that says fragile. And I would guess it's about I don't know, I'm not good at measurements. It'd be eighteen inches by Thirty-six inches, something like that.
Tracy Alloway 1:52
That is a very good physical description of a box. It's a cardboard box. However, I'm gonna say you're wrong. It is in fact A macroeconomic indicator. The other acceptable answer is it's part of the odd lots logo.
Joe Weisenthal 2:06
That's right. That's right. It's a box and that is core to oddlots. But you know, now we're gonna talk about literally when you think box, you don't often first think magic money box positive. And when you think box, you often don't necessarily think of a container ship, which is often called a box as in the book the box. But I think when people think about a box, they think about a cardboard box, corrugated or not.
Tracy Alloway 2:30
Now is a very good time to be thinking about boxes, by the way, because there's been some commentary about this, but we've basically had a sort of box apocalypse in the States. Are we still having
Bruno Satin 2:39
one?
Tracy Alloway 2:41
Uh, jury's kind of out, and we'll get into that in the discussion, but US box shipments so boxes of boxes, which I find funny. Sort of box exception. Anyway, US box shipments have fallen to the lowest second quarter reading since twenty fifteen. That's according to the Fiber Box Association. So these are
Joe Weisenthal 3:00
probably like probably like they're like folded up. Yeah, they're probably not they're maybe wrapped in plastic or something like that. So shipments of those lowest since like 2015.
Tracy Alloway 3:10
Yeah. And I think there are some other numbers we can get into that are like the worst since the financial crisis and things like that. And obviously the concern is Boxes tend to contain products that people are buying, right? So if no one's buying boxes, what does that say about retail spending, the health of the consumer, and the direction of the broader economy? That's when you get into the macro indicator stuff.
Joe Weisenthal 3:33
You know, I love e commerce. But I hate breaking down boxes. I know. I hate it so much. And then you like rip it up. There's no it's never quick. I would like to see some innovation on the ease of collapsibility. You know what I did?
Tracy Alloway 3:47
Because I buy a lot. I trained my dog to rip apart Amazon boxes. Oh, that's
Joe Weisenthal 3:51
amazing.
Tracy Alloway 3:52
But then he kinda went on strike and stopped doing it. Well,
Joe Weisenthal 3:54
that would have been cool. Get
Tracy Alloway 3:55
your kids to do it.
Joe Weisenthal 3:56
Yeah.
Tracy Alloway 3:57
Put 'em to work. Okay, well I am happy to say we do in fact have the perfect guest. We're gonna be speaking with Ryan Fox. He is a containers and packaging analyst for Bloomberg Intelligence. So Ryan, thanks so much for coming on OutLots.
Ryan Fox 4:10
Thanks for having me.

What is the “box apocalypse” and why are analysts treating cardboard shipments as a macro‑economic indicator?

Tracy Alloway 4:12
It's so nice to actually meet you in person because we've been IBing for a while talking about boxes. I don't know how this became so interesting to me, but probably because of the decline that we've been seeing.

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