South and Southeast Asian nations are set to be the biggest beneficiaries of the growing fragmentation in global sourcing, per Saxo Bank.
LOGISTICS
Ocean and air freight costs are falling below pre-pandemic levels and carriers are hoping that inventories will run down in time for a peak season rebound – however few are optimistic about this, per Freightos.
Latin American carriers and ports continue to add routes and invest as overall demand stays strong in the region, per UPS.
On Asia to US routes effective capacity remains at an oversupply with carriers continuing to announce more blank sailings in an attempt to reign in further rate drops, per Flexport.
Continued strikes across Europe are disrupting cargo flow across major markets, per UPS.
Lower imports have prompted marine terminal operators on the US West Coast to cancel at least one work shift per week, something that has complicated cargo flow for exporters due to the resultant delays and higher transportation costs, per the Journal of Commerce.
More logistics developments. Read More
INSIDE SOURCING
Uncertainty Keeps Supply Chains on Edge
Logistics costs are no longer an issue, in fact shippers now have the upper hand again. And inventory stockpiles are practically back to normal levels. Even materials prices have retreated – at least for now.
Thus the looming concern is consumer sentiment – around inflation, higher interest rates and global tensions.
Although it could be argued that many consumers are not directly impacted by any of the above, the constant media coverage amplifies them and makes them seem even more ominous than they might be.
A scared consumer is generally going to be a more conservative shopper.
PODCAST
How to Combining Data + Marketing Can 10X Your Business
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Whether you’re a massive corporation or a solopreneur, today everyone has the ability to collect customer data. The challenge is how do we turn it into something that is actionable – useful – in improving or growing our business?
In this episode Joanne Persico, President and Co-founder of OneCount, an SaaS platform, talks about what companies should be doing with their data to grow their business.
You’ll Learn:
- 6 Pillars for Rethinking How You Manage Data
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- How Better Data Management Can Support Your Company in Building Greater Trust with Your Customers
MARKETS
Good news from China’s PMI (purchasing managers index) came from the new export orders sub-index, which continued to be in expansion at 50.4 in March, despite a slowdown in demand in Europe and the US, per ING.
- Both official and Caixin manufacturing PMI sub-indices showed that new orders for the domestic market grew faster than new export orders. This reflects the divergence of growth in the Chinese market and the external market.
A fall in U.S. job openings this week put recessionary fears back in focus.
Asian currencies remained flat, with a few inching downwards, this week. At the same time the US dollar remained stuck at a two-month low, per Investing.com.
MATERIALS
- Oil prices surged almost 8% as markets opened in Asia on Monday morning after a surprise production cut by the Opec cartel.
- Cotton prices are now 40% lower than they were a year ago.
- Man-made fiber prices have started to rise, although yarn prices remain flat.
You can find Month-on-Month and Year-on-Year prices here.
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