The days of ‘quiet quitting’ and ‘the Great Resignation’ are one more era we can look back on.
- This week the US Labor Department announced that job openings fell to their lowest level in more than two years in November.
- Hiring and resignations both fell during November.
- December’s data is also expected to show a cooling off of the jobs market.
LOGISTICS
Tensions are worsening in the Red Sea, despite a US-led coalition that entered the area to try and contain strikes on ocean carriers.
Asia to Europe rates have hit a 14-month high as new surcharges hit shippers ranging from rerouting around Africa, peak surcharges and others related to the EU ETS carbon emissions scheme, per the Journal of Commerce.
CMA CGM (France) will increase its container shipping rates from Asia to the Mediterranean region by up to 100% as of Jan. 15 compared to Jan. 1, it said in a notice. – As of Jan. 15 – and until further notice, CMA CGM’ Freight All Kinds (FAK) rate for a 40-foot long container between Asia and the West Mediterranean will be $6,000, up from $3,000 on Jan. 1, per Freightos.
Maersk (Denmark) has said it was deciding whether to resume sending vessels through the Suez Canal via the Red Sea or follow rival Hapag-Lloyd (Germany) in continuing to re-route them after a weekend attack on one of its ships.
Rates from India to Europe are up to $750 per twenty feet-equivalent (TEU) compared to $425 TEU last month due to surcharges for shipments being re-routed around Africa, per Freightos.
The strong e-commerce demand from the US that kept trans-Pacific air cargo rates rising through the fourth quarter quickly fell off after the end-of-year holidays, per the Journal of Commerce.
THE CURRENT SITUATION IN SOURCING
The market consensus is that while we managed to avoid a recession in 2023, and most of the excess inventory has been cleared, there are still way too many uncertainties that could make 2024 another challenging year.
Last year the focus was on clearing inventories, this year reducing SKUs and consolidating vendors is on the table. Both play a key role in supply chain agility.
At the same time, more brands will be leaning into expanded services that agents offer – as well as looking to create stronger, more seamless relationships with vendors.
PODCAST
How To Integrate Legacy Systems with New Technologies
From 8-figure quotations for implementation to statistics that point to high failure rates, it can be difficult to make a compelling case to go all in on digitization.
That might be beginning to change … not the need for greater operational technology, but the hurdles in bringing it into your organisation.
In this podcast Tom Pierce, President of Integrated Information Systems, talks about helping companies with integrated business planning, cost and schedule analysis, and cross-functional collaboration.
Tom has parlayed his diverse background that includes military service, pastoral ministry, and application software to developing an approach to ERP solutions that combines human intelligence with innovative software thus bridging the gap between human and computer systems.
You’ll Learn:
- The art of ERP implementation: Why it’s more than just a science
- Balancing human and technological resources for maximum efficiency
- Integrating legacy MRP/ERP and logistics systems with emerging technologies
- How software solutions can benefit small and medium-sized businesses
MATERIALS
Cotton futures hovered near 80 cents per pound, reflecting a year-over-year loss of over 3% and remaining below a one-month high of 82.6 cents reached last month.
Oil prices inched up on heightened geopolitical tensions in the Middle East that stoked fears of wider supply disruptions.
CURRENCIES
The British pound remained strong as recent data reinforced the view that the UK economy remains resilient to high-interest rates.
The dollar strengthened against Asian currencies as investors are less confident about rate cuts in early 2024.
MARKETS
German inflation accelerated to its fastest rate for three months in December, casting doubt over investors’ hopes that the European Central Bank will start cutting interest rates as early as March.
France also saw inflation increase in December, primarily due to escalating energy costs.
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