Supply Chain Strategist Cover (1140 x 616 px)
Freight rates level off, but still high; Materials prices stabilize; Demand to remain strong through Q4

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Lian Aug2021

Mass market retailers appear to have their inventories under control, thanks to heavy investment in out-of-the-box logistics solutions.

LOGISTICS

Freight Rates Nov

Rate levels remained elevated, but stable this week.

Demand from Asia to North America is expected to remain strong for the remainder of 2021. 

  • The outlook reflects shippers placing bookings for cargo that must depart prior to Chinese New Year in early February. 
  • High demand and reduced capacity is keeping rates at elevated levels, which according to some estimates, are not expected to return to pre-Covid levels for at least another year, according to Flexport.

From Asia to Europe market demand consistently exceeds supply.  

  • Carriers are overcommitted and are limiting booking acceptance or rolling shipments.
  • With continuous vessel delays and shifts, schedule reliability is very low. 

 

Associated British Ports’ chief executive Henrik Pedersen has warned that supply-chain disruption is likely to persist until 2023. He pointed to the challenge of turning around a situation where both shipping and road deliveries are under stress.

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SUPPLY CHAIN STRATEGY

Target (USA) has pulled out all the stops to ensure its shelves are stocked.  In addition to contracting some of its own ships, the retailer unloaded about 60% of its containers at off-peak times and sent more of its goods to less busy ports, CEO Brian Cornell said during an earnings call.

MATERIALS

Materials Prices Nov

Yarn prices leveled off and are expected to remain stable now that we are past peak season.

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