Supply Chain Strategist | Feb. 02, 2023

Carriers fight for volume; Materials prices inch up; What’s Holding Companies Back from Automating

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Last year at this time brands were begging for containers. Now carriers are fighting for volume.

LOGISTICS

Carriers have entered 2023 with too much supply and not enough demand on the Asia-Europe routes, with rates continuing their downward spiral through January, per the Journal of Commerce.

Ex-Asia ocean rates were level this week – with transpacific prices well below 2019 levels – as carriers continue to take steps to reduce capacity and potentially put upward pressure on prices, per Freightos.

On Asia to the US East Coast routes rates remain relatively flat coming out of the Lunar New Year (LNY) week, however capacity will continue to increase over the next few weeks. Expect an increase in blank sailings, said Flexport.

On Asia to Europe routes space has eased after Lunar New Year and the coming weeks will reflect a considerable drop in volume levels as China resumes work this week. Rates are moving downwards again due to low demand post-Lunar New Year, per Flexport.

MATERIALS SOURCING

The Right Uniform for the Right Job

All uniforms are not created equally. Many simply offer standard functions such as basic stain and water repellency, antimicrobial finishes and perhaps some flame-retardant properties.However for the wearer to get maximum benefit from their uniform, further customization is required.

“We customize the functions of our uniforms for each customer. For example, our chef uniforms are specifically designed so that ingredients used in a kitchen -like sauce, food or whatever, will not stick to the fabric,” said Yuttana Silpsarnvitch atJ.M. Apparel Co. Ltd.

The company has a design and technical team to develop garments that specifically meet the requirements based on the functions of each customer. It produces about one million t-shirts and polos each month, and about 100,000 uniforms for many industries. Read More

PODCAST

The Core Values Behind Every Great Leader

There’s ongoing debate over which leadership playbook is the best way – and what skills are most important to develop in order to effectively lead an organisation – especially in what looks to be uncertain times .

But what if we didn’t need ‘new skills’. What if the answer lay in going back to core values, character building and even old fashioned ethics?

In this episode Maria Kelly, an executive coach, mentor and business consultant, talks about what she sees as the simple, but not always easy-to-follow principles that define good leaders.

You’ll Learn

The most important skill today’s leaders need to have.
The critical importance of being decisive.
Why good leadership often rests on simply being courageous.

🎧 Listen to the podcast

SUPPLY CHAIN TECHNOLOGY

If Automation is the Answer, What’s Holding Companies Back?

Rising wages and a scarcity of workers, not to mention the need for greater speed all point to investing in automating more processes.

However, while the upside can be massive, there are considerable (and justifiable) obstacles that are causing organizations to move slowly.

While capital outlay is certainly one speed bump, evaluating a growing list of solutions and rethinking their operations are some of the other reasons that’s holding companies back. Read more.

MARKETS

The eurozone looks set to avoid a recession after its economy unexpectedly grew 0.1% during the final quarter of 2022, despite soaring energy prices, rising borrowing costs and record high inflation.

Eurozone inflation slowed to 8.5% in January on the back of lower energy costs.

The US Federal Reserve shifted to quarter-point rate rise marking a return to slower, more orthodox rate rises as inflation eases.

The European Central Bank and the Bank of England raised rates by half a percentage point.

Paypal (USA) joins the rest of the tech sector and said it would cut around 7% of its headcount, meaning 2,000 people will lose their jobs.

MATERIALS