Astronomical freight rates coupled with soaring materials prices are ominous signals for the industry as we head into peak season.
LOGISTICS
- With peak season around the corner, exporters need to brace for additional rate increases and space struggles due to capacity that can’t grow quickly enough to catch up with demand forecasts, said Flexport.
- Persistent congestion, over-reliance on key gateways, Covid-19 related disruptions to labor, and infrastructure development are the key market challenges, according to Flexport.
- Container shortages driven by demand increases are expected to persist throughout the summer on routes between the subcontinent and North America.
- While Northern Europe ocean-port congestion continues, we will continue to see strong demand for air cargo.
- Rates from Asia to US East Coast and the Mediterranean were level – though planned mid-month rate increases and Peak Season Surcharges could continue to push prices up soon, according to Freightos.
MARKETS
China’s exports and imports both rose strongly in June, helping ease concerns over global growth that have knocked financial markets in recent days.
- China’s gross domestic product growth slowed to 7.9% in the April-to-June quarter after plateauing at 18.3% in the previous three months, signaling a halt to the V-shaped recovery from the COVID-19 pandemic.
The EU’s Christine Lagarde is poised to extend life support measures protecting the eurozone economy amid fears that surging delta variant cases could overwhelm the bloc.
The UK’s inflation rate rose sharply in June, far exceeding expectations and adding to pressure on the Bank of England to take the rise in prices more seriously.
US inflation surges as consumer prices leap 5.4 percent in June, the biggest jump since 2008.
- Most of the price increases came from used car prices, air fares and fuel costs.
PODCAST
How 5.11 Tactical is Expediting Innovation
Brands are challenged to continue to add innovation – while meeting growing demand for better quality.
This means not only more investment in R&D – but more strategic investment.
Vivian Lee, managing director at 5.11 Tactical Sourcing, talks about how she’s shortening the product development timeline to put her company ahead of the market.
SUSTAINABILITY
Levi’s and Tesco’s are the most recent brands to join the US Cotton Trust Protocol (USCTP). They follow Gildan activewear, which joined two weeks ago.
Crystal International Group Limited (Hong Kong) announced that its intimate apparel factory in Vietnam applied for WWF-HK’s Low Carbon Manufacturing Programme (LCMP) for the first time and was awarded Platinum Label.
- The Platinum Label is the highest recognition in WWF’s LCMP program.
MATERIALS
Materials prices increases are heating up with week-on-week jumps being the biggest in recent weeks.
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