As inflation becomes the next big market challenge, there’s growing discussion around whether rising wages and low unemployment will support consumers’ purchasing power in the face of price increases.
LOGISTICS
Shanghai ports are operating at 50% capacity due to lockdown-related labor shortages. This is offset to some degree by a shortage of goods as factories and warehouses are closed, according to Freightos.
Carriers are shifting to alternative ports, like Ningbo, when possible, according to Flexport.
Despite the disruptions, ex-Asia rates have remained stable to slightly decreasing. However rates could climb when operations out of Shanghai return to full capacity.
Trans-Pacific volumes are increasingly likely to hit a speedbump from inflation and a shift by consumers to spending on services.
Asia – N. Europe prices have decreased 20% to $12,050/FEU – the lowest level since July 2021 – even with worsening port congestion, said Freightos.
PODCAST
The Next Growth Opportunity for Outdoor Sports
After a decade of explosive growth, what’s next for outdoor sports? Where could brands find the next growth opportunities? And in a market dominated by a handful of power brands, will we be likely to see new brands coming in – and succeeding?
In this podcast, Danay Lea of Fluid State, sports brand growth consultancy, talks about:
- The next big target market for outdoor sports.
- Why small brands can find big opportunities in the outdoor sports market.
- What successful outdoor sports brands do right.
MARKET OUTLOOK
JP Morgan has said it is prepared for “drastically higher interest rates and more volatile markets.” However the bank feels that US consumers are in good shape with a low level of unemployment and rising wages.
Morgan Stanley warned of “demand destruction” driven by higher prices.
MATERIALS
Falling oil prices helped to stabilize prices for most raw materials, however cotton yarn prices in both China and India remain painfully high.
In India, rising prices for man-made fiber yarns are being supported by high cotton prices, said India Ratings and Research.
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