Mike Switzer interviews John McDermott, business editor of the Post and Courier in Charleston, SC. John tells us about the state ports losing container business, Buc-ee’s settling a high-profile trademark dispute with SC retailer, and Gov. McMaster formally throwing his support behind the sale of Norfolk Southern to Union Pacific.
TRANSCRIPT:
Switzer: Hello, and welcome to another edition of the South Carolina Business Review. This is Mike Switzer. It's Monday, and that's when we like to take a look at current business issues that are trending across our state right now and discuss them with one of our fellow news media friends. This week, we have John McDermott, business editor of the Post and Courier. And a disclaimer. The Post and Courier has a financial relationship with voterheads.com a company partially owned by Magnolia Media, Inc. The producer of this show. He joins us by phone now from his office in Charleston, South Carolina. John, welcome back to the program.
McDermott: Good to be here, Mike.
Switzer: So tell us what's showing up on your radar this week.
McDermott: Container ships, which, increasingly, there are fewer coming to the port of Charleston. Unfortunately, their container volume has been down year over year. Number of containers that are coming across the docks is lower than the year before.
Switzer: Is this because of tariffs?
McDermott: That's one reason. But you have the war in Iran, which is constricting some vessel flow through the Suez Canal. You have this broad economic uncertainty with inflation and rising gas prices. The folks at the port, talked to Micah Malice about it. Kind of scratching their head. They're just saying there's a. Just a lot of mixed signals out there. Kind of crazy thing is that, like, consumer spending has really been resilient. That typically translates into imported goods because, you know, people are buying stuff from. That's made overseas. Well, it's just not enough to kind, of move the needle at the port. So they were down. I don't know. I think they were down about 4% last fiscal year. In the first two months of their new fiscal year, which started July 1st, they're down, I think it's about 8%, so.
Switzer: Getting worse.
McDermott: Yeah, it did widen.
Switzer: So is this just our port or is this the country?
McDermott: The only two I really looked at were Savannah and Virginia, which are near as kind of big competitors. And they both also, have seen a little downturn over the summer. There are some projections that this month we may see an uptick, only because retailers are actually still shipping Christmas merchandise. So we'll see.
Switzer: All right. All right. What else do you see, John?
McDermott: Well, we had, an interesting lawsuit down this way involving BUC EE's, which, if you've never been to one, it's one of those enormous gas stations, kind of a Costco of gas stations, if you will. And there's one in Florence, and I think they're opening another one a couple years down near Hardeeville. They're Highly protective of their logo, which is a beaver, has the buck teeth and the hat. And there was a retailer in Goose Creek that had several stores around that was using a very similar looking animal on its T shirts and other merchandise. So it's sued this company and they came to a settlement recently where the company will pay BUC EE's $850,000 and basically stop using the logo to get rid of whatever merchandise was still floating out there in its stores.
Switzer: Wow.
McDermott: Yeah. And it's interesting. The story really picked up a lot of interest. It's been. I saw it's been written about in law journals. USA Today had a national story on it.
Switzer: All right, well, John, we have time for one more. Where should we go next?
McDermott: Governor McMaster has formally told federal regulators that he, is in full support of the $85 billion deal that will create a transcontinental railroad that will include South Carolina. Norfolk Southern, which is based in Atlanta, is one of the two big freight haulers here in the Palmetto State, is, proposing to be sold to Union Pacific, which is based in Nebraska. The governor earlier this month wrote to the, Surface Transportation Board pretty much saying expanding the role of rail can help advance, the state's goals. One of the interesting things is that, you know, Norfolk Southern, they're made up of a series of acquisitions that were made over the years of these smaller regional rail lines. And their oldest operating railroad that they acquired was from Charleston, called the Friend of Charleston.
Switzer: That goes way back.
McDermott: Yes, it does. It went back to 1824.
Switzer: Very good. And so do you think with, our governor's support, this is, going to be a done deal now?
McDermott: Probably will. I think it has widespread support. Like right now, if a Norfolk Southern train wants to haul something past like Chicago, it has to stop there and has to take all those cars and switch them to, say, Union Pacific. So there's this sort of antiquated, log jam in the rail system right now that this deal will show. Will this make things more efficient and could open up other mergers? Possibly, if it's successful.
Switzer: Well, John, thanks for the update.
McDermott: All right, Mike, thank you.
Switzer: John McDermott is business editor of the Post and Courier in Charleston. And a disclaimer. The Poston Courier has a financial relationship with voterheads.com, a company partially owned by Magnolia Media Inc. The producer of this show with the South Carolina Business Review. This is Mike Switzer.
The views expressed on, the South Carolina Business Review do not necessarily reflect those of South Carolina Public Radio.
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