‘Unexpected’ has become the new normal.
LOGISTICS
Rates to the U.S. East Coast and Gulf Coast continue to see softening while rates to the U.S. West Coast are leveling off, according to Flexport.
China – US ocean transit time data show average duration in December was 35% lower than a year ago, though some lingering East Coast and Gulf congestion is keeping transit times 20% higher than in 2019, per Freightos.
On Asia to Europe routes space is full and there are a considerable amount of rollings in the lead up to Lunar New Year. Rates remain more or less stable compared to December but are expected to be under pressure again after the Lunar New Year period, per Flexport.
Carriers on the Asia-Europe trade have stepped up capacity management measures as demand weakens through the traditionally busy Lunar New Year period and beyond, per the Journal of Commerce.
China to N. America and Europe air cargo rates are more than 30% lower than a year ago when demand was surging. Despite these price declines, fuel and labor costs are keeping air cargo rates more than double 2019 levels, according to Freightos.
On Indian Subcontinent to North America routes, Chinese New Year is bringing blank sailings and equipment issues as lack of Chinese imports results in less containers being repositioned, per Flexport.
Capacity borrowed from regional and more minor trade lanes has shifted back to intra-regional service, per Freightos.
APPAREL SOURCING
How Thailand Became the Best Place for Sourcing Smaller, Sustainable Orders
Unable to compete with big volume, low cost competitors, Thai manufacturers found that they could combine their legacy as a top textile producer with their ability to be fast, reliable, creative -and accept small orders, even those with micro MOQs.
Today, even larger brands want to place small orders but few garment manufacturers can accept orders below 500 pieces.
Most Thai manufacturers are willing and able to accept orders with low minimums, something no other will do.
“There’s no more six-month planning in advance. So we have to be able to adapt to the changes, usually last minute changes. We are very good at that, which is one of our competitive advantages,” said Narumol Hutasuwan at Theparerg Co. Ltd. Read more
PODCAST
The Six Silent Business Killers – and How to Avoid Them
Many companies think that having survived the pandemic that the worst is behind them. However they might be surprised to find that economic instability can strike at any time.
To ensure that they can survive in any circumstances, leaders need to continually be looking for those ’silent business killers’ that are often lurking in even seemingly healthy companies.
In this podcast Steven Blue, CEO of Miller Ingenuity and author of five bestselling books, talks about things that can kill your business – without you even being aware of them happening.
You’ll Learn:
- The warning signs of failure that he’s seen in top international companies.
- The six ‘silent business killers’ and how you can avoid them.
- Why too much success can lead to failure.
- Why conflict amongst colleagues can help companies avoid critical mistakes.
SUPPLY CHAIN TECHNOLOGY
How Delivery Tech is Working to Solve Last Mile Challenges
E-commerce increasingly competes on faster delivery. But with a shortage of drivers, the need to reach more remote locations and mounting cost pressures there’s a big opportunity for technology to provide solutions.
Total global investment in the category now exceeds $200 billion, according to McKinsey & Co. The developments have been impressive, but not without huge challenges as well. Read more
INSIDE SOURCING | Jan 2023
The Situation Heading into the New Year
The abrupt reopening of China has thrown global supply chains one more ‘never saw it coming’ (or at least not this fast!). And just when things looked they were starting to normalize!
Changes are happening in other key garment producing nations as well. Read more
MARKETS
UK inflation slowed for the second consecutive month in December after hitting a 41-year peak in October, per the Office for National Statistics.
- December inflation stood at 10.5%, down from 11.1% in October.
- One of the biggest impacts on inflation was declining gasoline prices.
- Core inflation (excluding energy, food, alcohol and tobacco) remains unchanged at 6.5%.
The British pound has rebounded to above $1.24 as investors bet interest rates will hit 4% as soon as next month.
Microsoft (USA) will lay off 10,000 employees (5% of its workforce) by the end of March, as the company joins other tech giants that are also making significant staffing cuts.
MATERIALS
Cotton futures have been trading around 85 cents per pound since November amid weak demand, especially from the three largest consumers China, India, and Pakistan, per Trading Economics.
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