Holiday 2021 could end up being a boon for smaller brands who have less complex supply chains.
Consumers are likely to fulfill unmet demand for products from big brands by a willingness to try something new.
LOGISTICS
Rates from Asia to the U.S. are starting to retreat (finally) with port, warehouse and trucking backups now the biggest headache.
Delays are making it unlikely that new orders will arrive in time for the holidays, with rate drops indicating that the peak season rush is easing, according to Freightos.
Asia to Europe still faces market demand that consistently exceeds supply of equipment. Continuous vessel delays and shifts are making schedule reliability very low, said Flexport.
The share of bookings that moved by air has more than doubled since June when congestion at LA/Long Beach and elsewhere started to build, said Freightos.
Demand outlook remains strong, although past peak for 2021. Any just-in-time cargo for the holidays will now likely need to move via quicker modes of transport, according to Flexport.
To help ease port congestion, the Ports of Los Angeles and Long Beach will levy fees on containers that are not collected promptly (as if any importer would willingly delay picking up goods right now?).
PODCAST
What to Consider to Successfully Digitizing Your Business
In this episode of A Seat at The Table, digital transformation expert Sunny Han talks about:
- The importance of re-evaluating your company’s data architecture before ditigitizing your operations.
- The overlooked benefits of being able to make faster decisions.
- The role that API’s are playing in boosting the capabilities of software systems.
- Why by digitising you’re not simply implementing software, but are trying to evolve your operations.
ENERGY
Energy prices soared in Q3 and are expected to remain elevated in 2022, adding to global inflationary pressures, according to the World Bank.
- Prices will remain at high levels in 2022 but will start to decline in the second half of the year as supply constraints ease, the World Bank forecast.
MATERIALS
Cotton prices continue to hit new highs, while prices for other materials have leveled off this week.
TRADE AGREEMENTS
China is continuing to work towards CPTPP membership. At the same time, Japan has reached out to the U.S. encouraging it to join the multiregional trade pact.
- Joining the CPTPP could be a decades-long process for China, despite growing cooperation ASEAN-China cooperation, said analysts commenting on the ASEAN Summit being held this week.
- The UK applied for membership in August.
- Indonesia and the Philippines are considering joining.
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