China is expected to show a slightly slower monthly growth in the manufacturing PMI to 51.7 in April from 51.9 in March. The slight dip can be traced to slower export orders from the US and Europe, per ING Bank.
LOGISTICS
“In the first quarter, deceleration in US retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia. Given current macro conditions, we expect volume to remain under pressure,” per UPS’s recent earnings statement.
The General Rate Increase (GRI) in mid April has thus far proven successful with transpacific ocean rates climbing sharply last week, per Freightos.
Despite last week’s rate rebound, container shipping advisory, Drewey, maintains that price spikes are temporary and that rates will fall further in 2023 on weaker demand.
Carriers are supporting rate increases by reducing capacity and announcing additional increases for early May, including rate increases on Asia – Europe lanes, per Freightos.
Capacity on LATAM routes has opened up due to softer demand and ocean carriers deploying new services or adding additional capacity to existing routes. Supply exceeds demand putting downward pressure on rates and is expected to remain beyond Q2, per Flexport.
More logistics developments. Read More
PODCAST
What If Everything We Assumed About Supply Chains Was Wrong?
The pandemic put supply chain weakness in the spotlight.
Most people believe the solution – or at least the foundational part of it – is greater automation and digitisation.
But what if we are misunderstanding the problem? Or maybe just need to look at it from a different perspective?
In this podcast Dr. Yossi Sheffi, an award-winning global supply chain expert and Director of the MIT Center for Transportation and Logistics, points out the overlooked strength and resiliency of our supply chains.
He further challenges our conventional wisdom by arguing that despite the power of AI, there are many things that we still need people to do.
You’ll Learn
- Where global supply chains proved how resilient they actually are.
- The greatest vulnerability in over reliance on automation.
- Where humans surpass computers in supply chain operations.
MARKETS
Australia’s March inflation rate came in lower than expectations at 6.3% year-on-year.
In the US, highest earning income groups had the largest decline in spending, with a 13% reduction in total spending month over month, per the Morning Consult.
MATERIALS
Cotton prices fell as concerns rose that a slowing global activity might affect demand, and the latest U.S. Department of Agriculture weekly report showed a slowdown in sales.
Yarn prices remained flat, but could fall if fiber prices continue to drop.
You can find Month-on-Month and Year-on-Year prices here.
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