Logistics costs and materials prices have leveled off, but remain high – and are likely to stay that way until we get past Chinese New Year.
LOGISTICS
Ocean rates remain unchanged from the previous weeks with rates stable but still punishingly high.
Rates are expected to remain high in the run up to Chinese New Year.
Asia-EU air cargo rates hit new highs (+30% in the last four weeks to $7.84/kg, exceeding the May 2020 peak) as surging Covid cases in Europe have driven up urgent demand for PPE, according to Freightos.
China-US West Coast air cargo rates rose 25% during the last four weeks, even higher than in spring 2020, per Freightos data.
ENERGY
Coal power is on track to hit a new global record this year after an economic rebound that could drive worldwide coal demand to an all-time high in 2022, according to the International Energy Agency.
- The global gas supply shortage, which has caused record-high prices worldwide, has helped renew demand for coal, the IEA says.
PODCAST
Building a Workplace Where People Want to Stay
How do we create a stable workforce in the face of the ‘Great Resignation’?. In this podcast episode, Ralf Specht, author of Building Corporate Soul, and former co-founder of $100 million Spark44, shares how to create companies that support both people – and productivity.
– How companies can build stronger relationships with their teams and reduce employee turnover.
– Why it’s possible to have a workplace environment that’s both competitive and supportive.
– How to build a company that has a ‘soul’.
SUSTAINABILITY
2021 C.L.A.S.S. Icon Award winner, Duarte (Portugal) is rolling out its new sustainably made streetwear collection. Read More
MATERIALS
Materials prices remained flat during the past week as demand slowed during the holiday season.
Cotton prices have backed down from their November peak, but remain at near record highs.
Looking ahead, the USDA latest monthly report estimated global cotton production to go up due to better crop yields in Brazil, Australia, and Pakistan.
The recent drop in oil prices (as nations released oil reserves) are helping to reduce synthetic fiber prices.
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