SCS Jan 6
Materials prices stay fairly stable, but logistics buckle under pressure from Omicron wave.

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As we head into another year there’s growing frustration that we are still wrestling with the pandemic.  This year nations will need to address the dual challenges of managing public health and economies that are already strained after two very disruptive years.

LOGISTICS

Freight Rates Jan 6

Measures to contain recent outbreaks in the Ningbo region are limiting trucker access to the port and closing some warehouses, according to Freightos. 

In the U.S., LA and Long Beach ports are facing surging Covid cases that are likely to worsen port congestion there, according to the Journal of Commerce.

Port bottlenecks on both sides Asia–Europe routes are forcing carriers to cancel sailings even as they increase capacity to compensate for vessels delayed by congestion, said the Journal of Commerce.

Broader travel restrictions could mean Chinese factories that normally close over Lunar New Year will stay open, reducing the typical pre-holiday pressure on logistics, said Freightos.

Air cargo rates out of Asia have fallen about 30% from their mid-December peak season highs, per Freightos Air Index.   However, newly heightened travel restrictions will reduce air cargo capacity and could cause rates to spike again. 

Maersk’s $3.6 billion acquisition of LF Logistics will significantly expand its Asia Pacific contract logistics and e-commerce footprint in Asia Pacific.

PODCAST

What would it be like if you could have better predictive software for your supply chain? Technology that allowed you to make decisions based on representations of multiple potential scenarios.

In this podcast, John Lindsey, President of InCite Logix, talks about how technology that’s been used in heavy industry could now provide light industry with a critical view of its global supply chains.

  • How digital twin modeling works and how it can be used to better control supply chains
  • Up and coming developments that will enable us to link multiple digital twins
  • How digital twin technology is being used provide business simulations to better train employees.
  • What could be the next big thing in supply chain technology.

LISTEN TO THE PODCAST

MATERIALS

Prices for materials remained stable during the first few days of January, as the New Years holiday paused business for a few days.  However prices are rising from their pre-holiday levels.

Oil prices rose earlier this week as OPEC+ reiterated its view that Omicron’s impact on fuel consumption would likely be “mild and short-lived.”

India’s cotton farmers are expecting a larger crop this season, with analysts expecting prices to soften this year.

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