This might be the end of the line…
“I think what we’re seeing is, everyone is looking around going ‘Hang on, it’s gone too far.’ We need to make money.” – BetMGM Chief Executive Adam Greenblatt told The Wall Street Journal, discussing how companies focused on customer acquisition and revenue growth at the expense of profits. Could apply to many industries these days.
LOGISTICS
Asia – N. Europe rates are 7X their level three years ago, as congestion outpaces falling demand, according to Freightos.
The standard peak season appears to be pushed off, yet Asia – N. America volumes are projected to decline through the end of the year due to over-ordering and low demand, said Flexport.
With 153 anchored and idle vessels last week, port congestion in the US breaks a new record, said UPS.
A planned eight-day strike in Felixstowe starting next week will likely worsen congestion and delays for UK logistics, and put additional pressure on alternative European ports, per Freightos.
Low water levels on the Rhine river is disrupting barge service in Germany, said Freightos.
MATERIALS SOURCING
Gearing Up for a Growing Demand for Quality
When the pandemic hit many companies cut back and tried to weather the storm. However, Mandarin Spinning, a producer of sustainable cotton yarn, saw this as an opportunity to do the kind of maintenance on its facilities that can be difficult when order volumes are high. Read more
PODCAST
A ‘Success Algorithm’ to Drive Predictable, Repeatable Outcomes
Every business dreams of being able to create more predictable success for their companies.
Doing that has become increasingly challenging – especially in today’s fast changing and very unpredictable markets.
Thomas Douglas, CEO of JMark has formulated processes that provided repeatable outcomes and a predictable revenue stream – that placed JMARK on a strong growth trajectory.
What You’ll Learn
- How he developed an ‘algorithm for success’.
- How to start building outcomes that business leaders want for their companies.
- The importance of pairing the right teams with the right technology – so that technology will facilitate achievement, rather than get in the way.
- The importance of developing internal reports that can show you a road map for success.
DEMAND
Walmart (USA) said that it has canceled billions of dollars in orders as part of a continued effort to align inventory levels with projected demand.
- The company said it is making progress right-sizing its inventories, but that it will take at least a couple more quarters to get back in alignment.
ENERGY
The Chongqing municipal government has ordered factories to suspend operations until Aug. 24 to conserve energy after soaring temperatures led to a surge in electricity demand.
In Sichuan, which is heavily reliant on hydropower, the government ordered many factories to shut or scale back production for six days.
MATERIALS
Cotton futures rose above 120 USd/Lbs, the highest in over 7 weeks, as traders balanced prospects of lower production against lower demand. The latest USDA crop report showed production for 2022-23 down at 12.6 million bales, which would be the lowest level since 2009-10.
Oil prices weakened as traders weighed fears of a global economic slowdown and a bullish Russian supply outlook against falling US crude inventories.
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A Growing, Reliable Source for High Quality, Sustainable Cotton Yarn
An Ecosystem that Connects On-Demand Trends with Factory Production
Why Wholesale is Still Critical for Most Brands
