Energy, and oil in particular, is facing a host of growing geopolitical pressures that could put increasing pressure on global supply chains.
LOGISTICS
Supply chain delays and COVID restrictions combined to slow operations at Yantian this week, with growing delays reported in Shanghai and Dalian as well, according to Freightos.
The U.S. continues to face port delays as about 10% of dock workers are on sick leave due to Omicron, according to Flexport.
China to Europe rates rose 5% as ports still face congestion, according to Freightos.
Heading into Chinese New Year, demand is weakening – and there is growing consensus from shipping platforms that it could remain soft even post-CNY.
The Indian Subcontinent- North America routes face increasing demand, with rates expected to continue climbing in February, according to Flexport.
SIGNALS
Next (UK) forecast its prices would rise 3.7% in the first half of 2022 and 6.0% in the second half due to higher freight rates and increased manufacturing costs.
PODCAST
A Supply Chain Platform for Asian Suppliers
One of the great things about technology is that it has leveled the playing field giving even small businesses access to tools that used to be only available to the big players.
In this episode Bernard Hor, Co-Founder of Hatio Group talks:
How to get started digitizing your supply chain.
Why you need to start small to be big.
The big wins that small to midsize companies can expect from digitizing their supply chains.
ENERGY
Oil rallied strongly this month (+14.2%), surpassing a seven-year high as traders rushed to lock in supply on expectations of resurgent demand, patchy production and an unstable geopolitical landscape.
MATERIALS
Materials prices retreated this week, but overall prices trended higher this month.
- Cotton prices rose 8.5% during January, with wool up 2.4%.
- Polyester yarn prices in China inched up 1.25% this month.
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