| Ships, planes and railroads don’t have | | | | expressed in these reports may change without |
| enough capacity; this is why global | | | | prior notice. You can also read our past |
| transportation is one of our main themes. We | | | | periodic market and economic commentary |
| continue to believe that global | | | | articles by going to the Commentary Archive |
| transportation vehicles and their suppliers | | | | on our web site |
| are good investments. | | | | |
| | | | These articles are for informational purposes |
| Air Cargo-Guest Commentary by David | | | | only and are not intended to be a |
| Hendershott | | | | solicitation, offering or recommendation of |
| | | | any security. Guild Investment Management |
| Traditionally a lot of air cargo planes were | | | | does not represent that the securities, |
| older passenger planes converted to cargo | | | | products, or services discussed in this web |
| planes. Conversions are still done, but the | | | | site are suitable or appropriate for all |
| supply of older planes has dried up for now, | | | | investors. Any market analysis constitutes an |
| and the need for fuel efficiency is making | | | | opinion that may not be correct. Readers must |
| conversions a lot less attractive than it | | | | make their own independent investment |
| used to be. Because of the urgent need for | | | | decisions. |
| freighters, even the inefficient older planes | | | | |
| are converted as fast as they become | | | | The information in this article is not |
| available. Boeing entered the conversion | | | | intended for distribution to, or use by, any |
| business last year. Even with the high fuel | | | | person or entity in any jurisdiction or |
| costs, airfreight is far more efficient than | | | | country where such distribution or use would |
| maritime shipping for the timely delivery of | | | | be contrary to law or regulation, or which |
| high value, low weight or perishable items | | | | would subject Guild Investment Management to |
| such as electronics, food and apparel | | | | any registration requirement within such |
| directly to their destinations. The biggest | | | | jurisdiction or country. |
| market for new aircraft is in the long haul | | | | |
| segment. | | | | Any opinions expressed herein, are subject to |
| | | | change without notice. In addition, there are |
| In reality it's not just the air cargo system | | | | many market, currency, economic, political, |
| that is straining it’s capacity. The | | | | business, technological and other risks that |
| maritime shipping industry doesn't have | | | | are beyond our control. We make reasonable |
| enough ships. The ports are operating at | | | | efforts to provide accurate content in these |
| nearly full capacity, or more in some cases. | | | | articles; however, some content and some of |
| The rail systems are proving inadequate even | | | | the assumptions, formulas, algorithms and |
| in the U.S. There was an article in the WSJ | | | | other data that impact the content may be |
| on Wednesday detailing some of the | | | | inaccurate, outdated, or otherwise |
| infrastructure needs in the U.S., concluding | | | | inappropriate. In addition, we may have |
| that we need to spend $1.3 trillion by 2010 | | | | conflicts of interest with respect to any |
| just on maintenance and repair, and that | | | | investments mentioned. Our principals and our |
| won't help the capacity issue. | | | | clients may hold positions in investments |
| | | | mentioned on the site or we may take |
| For more information about global investing | | | | positions contrary to investments mentioned. |
| visit | | | | |
| | | | Guild’s current and past market |
| For more information about guild investment | | | | commentaries are protected by copyright. |
| management services visit | | | | Apart from any use permitted under the |
| | | | Copyright Act, you must not copy, frame, |
| Guild Investment Management, Inc., is a | | | | modify, transmit or distribute the market |
| registered investment advisor. All material | | | | commentaries, without seeking the prior |
| presented herein is believed to be reliable. | | | | consent of Guild. |
| Investment recommendations and opinions | | | | |