Freight rates and materials prices decline; Interest rates are now a rising concern

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‘Quiet Quitting’ is now squaring off with ‘Quiet Layoffs’ as companies face declining profits.

LOGISTICS

The continued downtrend in floating market rates leading into Golden Week – despite the planned blank sailings – indicates that demand from shippers will not be materializing, said Flexport. 

Transpacific air volumes have declined since the start of the year and rates in early September were more than 50% lower than last year, said Freightos.

On the Indian Subcontinent – N. America routes, further rate decreases are seen across most port pairs as capacity continues to outweigh demand, per Flexport.

Congestion at the U.S. ports remains under control and the called-off U.S. railroad strike spells good news for inland congestion concerns, per Flexport. 

In the UK, Felixstowe Port workers will be on strike from September 27 until October 5. Liverpool Port workers will be on strike from September 19 to October 3, said UPS.

The air cargo market in China could be impacted due to the renewed Covid-19 Zero policy, per UPS.

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MATERIALS SOURCING

AEC Hero

How One Mill is Reducing Potential Production Problems

A dyehouse is often the missing link in an otherwise reliable supply chain.  AEC Textiles has solved this.  This textile converter is used to meeting even the extremely high standards set by the Japanese market.  This has led them to achieve top quality, while also being more flexible and reducing lead times.   READ MORE

MARKETS

China’s economy showed surprising resilience last month, with growth in factory output proving faster than expected and retail sales shoring up the recovery from Covid and heatwaves.

The U.S. Fed just raised interest rates again – this time by 0.75%.  Further increases are expected.

The Bank of England raised interest rates by 0.5 percentage points to 2.25%.  A further rate increase is expected in November.

MATERIALS

Cotton futures prices fell week-on-week, continuing an overall downward trend.  Fresh COVID-19-led restrictions in top consumer China added concerns over the global economic outlook keeping prices low.

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