Country of Origin matters, but not to consumers.
The outsized success of Shein and Temu this year proves that for consumers it comes down to having the right product, at the right price.
LOGISTICS
Maersk (Denmark) will resume sending vessels through the Red Sea after a US-led coalition began providing naval security against attacks by Iran-backed Houthi rebels, per the Financial Times. The carrier said it would stop rerouting vessels around southern Africa, a long and costly route, and would proceed through the Suez Canal after the coalition was launched.
Hapag-Lloyd and MSC have no plans to return to routes via the Red Sea, even with the new security measures, per Freightos.
Overcapacity in the market is expected through early 2024, per UPS.
Although carriers would like to delay new equipment deliveries, this is unlikely as carriers want to press on with green fleet transition, and start realizing return on investment, per Drewry.
Carriers are facing higher costs, estimated at as much as $2M per round trip due to longer transits, as well as the possible increase in demand before Chinese New Year. This could push ocean rates up significantly in January, per Freightos.
Some Asia – US East Coast services, especially from the Indian Subcontinent, that typically sail via the Suez Canal could now divert around the south of Africa. This has resulted in ‘significant surcharges’ on India – N. America containers, per Freightos.
PODCAST
Supporting Mental Health in the Workplace: For happier and more productive teams
Millions of people struggle with mental health and yet most are reluctant to let anyone know about it.
From being considered taboo to fearing of being labeled as unstable or being seen as a complainer, many people just try to power through.
In this podcast Bryce Seto, a successful SVP at an insights consultancy, who scaled startups from $0 to $10M – and who also happens to be diagnosed with borderline personality disorder – talks about the benefits of supporting mental health in the workplace.
You’ll Learn:
- The importance of addressing your own mental health as a leader, in an open, honest, and authentic way
- Why disorders are not the barriers we think they are and how we can accept and overcome them, even use them as strengths in our work
- Why vulnerability is a key to success as a leader, and we need to not be afraid of it.
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 earlier in the month.
WTI crude futures steadied around $72 per barrel but were still headed for the first annual loss since 2020 amid concerns about increasing global crude supplies and slowing demand growth, while geopolitical conflicts and OPEC+ production cuts failed to lift prices.
MARKETS
The U.S. core personal consumption expenditures price index, which excludes volatile food and energy prices, increased just 0.1% for the month, and was up 3.2% from a year ago, the Commerce Department reported.
CURRENCIES
The euro strengthened above $1.1 at the end of 2023, up nearly 4% for the year and touching its highest level since July on expectations that the Fed will start cutting rates.
The dollar edged downwards against its peers, reversing two straight years of gains, dragged down by market expectations that rate cuts could start as early as March.
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