Retailers are shouldering increasing costs for two-day delivery.
However, a growing number are realizing that shoppers who need something right away can go to an actual store.
LOGISTICS
Daily rates from China to the West Coast so far this week have dipped even further and are less than 7% higher than in November 2019, per Freightos.
U.S. West coast ports registered a 25% year-on-year decline in cargo volumes, per UPS.
Asia to Europe demand continues to be weak going into December with no sign of improvement. Rates are still following a downward trend. Space is readily available but schedule reliability is affected by port congestion and delays, Flexport.
Ocean carriers are increasing the rate of blank sailings in December in the hopes of reducing what is now overcapacity and stabilizing rates, per Freightos.
Xeneta’s global XSI for the contract market dropped by 5.7% in November. This is the third month in a row rates have dropped, but the largest month-on-month decline recorded since the launch of the XSI (Xeneta shipper’s index) in 2019.
SUSTAINABILITY
The Green Shipping Challenge, which encourages governments, ports, and businesses to prepare commitments to stimulate the transition to green shipping, was launched this week. It addresses innovations for ships, expansion in low- or zero-emission fuels, and regulations to help boost the uptake of next-generation vessels.
Crystal International (Hong Kong) has achieved the first-ever certified net zero jeans. Crystal Denim is participating in the HKQAA pilot Net-Zero Certificate scheme and has become the first company to achieve net-zero at a product level. Read More
MATERIALS SOURCING
A Garment Manufacturer that Specializes in Product Development
Brands need a lot more support from suppliers these days to navigate complex market conditions.
“We are a more customer service oriented garment factory. Because we are a mid-size factory we are able to be very flexible,” said Pirapol Tatiyamaneekul at S.P. Brother.
The manufacturer is able to help customers transition their brand DNA or even launch a new brand by supporting them with advanced product development. Read More
INSIDE SOURCING
Unsold stock is piling up in warehouses operated by high street fashion retailers including Marks & Spencer as supply-chain pressures ease and shoppers rein in spending.
- Many leading UK retailers have asked suppliers to postpone deliveries to its warehouses and have delayed finalising orders for next year.
- Discounting is expected to carry through January in an effort to clear unsold stock.
A growing number of brands have stopped sourcing from Myanmar over concerns of human rights abuses in the country, which has been under political turmoil since its army’s coup against the government in February 2021.
- More retailers are partnering with the Ethical Trading Initiative, as well as doing on-the-ground audits, to more closely monitor the situation – and in many cases exit the country.
A snapshot view of key developments in Asia sourcing – all in our INSIDE SOURCING November report. Read more
PODCAST
How to Stay Afloat – and Even Thrive – During Times of Internal Instability
In good times even poor leadership can keep the ship afloat. But more turbulent times calls for enterprises to rethink their leadership.
It’s led to a new way of looking at who might be the right people, and what might be the right personality traits and experience to take your organization from where it is to where you’d like it to be.
In this podcast Robert Jordan, co-founder and head of the leadership team at InterimExecs, talks about identifying the right talent that can lead companies through challenging times.
You’ll Learn:
- How companies can stay afloat—and thrive—during periods of internal instability.
- How a leader’s leadership ‘style’ and actions can help make or break a business.
- Why sometimes leaders can – and maybe should – lean on their
- teams.
MARKETS
Inflation in the eurozone has fallen for the first time in 17 months, raising hopes that the biggest price surge for a generation has peaked and the European Central Bank will be able to shift to smaller interest rate rises next month, per the Financial Times.
SUPPLY CHAIN TECHNOLOGY
How Digital Twins are Making Supply Chains More Resilient, Less Risky – and Reducing Costs
Those who thought that the supply chain disruptions were something that would pass as we headed out of the pandemic years are realizing that the disrupters might change, but the level of instability has remained. Shocks to supply chains are not only occurring more frequently, the impact they have is also more intense.
Digital twin technology is now making it easier and faster for supply chain executives to identify alternative opportunities – and evaluate them – reducing what previously could take a few weeks down to a few hours. Read More
ENERGY
Germany has signed a long term deal with Qatar to replace about 6% of Germany’s 2021 gas imports from Russia, according to industry association BDEW. Other nations are also turning to Qatar as an alternative supplier of LNG.
MATERIALS
Rising supply and weakening demand (as a global recession looms) has continued to put downward pressure on cotton prices.
Weak demand has kept yarn prices flat.
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