Supply Chain Strategist | Jan. 26, 2023

Ocean rates level off (for real!); Materials prices stable during CNY;

Share This Post

Better than Expected: The most recent economic data from the U.S., Eurozone and UK showed that inflation was slowing and that economies might avoid a recession this year.

LOGISTICS

On Asia to North America routes minor rate easing from the larger ocean carriers is still seen going into the new Lunar Year, despite this being a period of the year where blank sailings are most common, per Flexport.

Carriers have canceled about half of transpacific capacity for the next two weeks and may blank even more in the weeks to follow in an attempt to stabilize or even push rates back up a bit, despite easing demand. They had done this at the start of the pandemic when demand slumped, said Freightos.

Asia to Europe rates remain more or less stable compared to December but are expected to be under downward pressure again after the Lunar New Year period, said Flexport.

Air cargo experienced a weak end to 2022, which is expected to continue into midyear 2023, per UPS.

MSC and Maersk, the number one and two in the container shipping industry by volume, said they are ending an 8-year agreement known as the 2M alliance. Together they control two-fifths of all seaborne freight, per the Financial Times.

MATERIALS SOURCING

The Winning Combination of Agile Manufacturing with Strong R&D

Flexibility has been the key to success for both brands and manufacturers as both face more challenging market conditions.“Our strategy is to make low cost products, while using great raw materials,” said Nattapong Tummachudpong at Double Star Industry Co., Ltd.

For Double Star, flexibility goes beyond the manufacturing process and includes the kinds of products they are able to make.

This vertically integrated company includes spinning, weaving, dyeing & finishing, printing, embroidery and garment manufacturing. Although they make many kinds of textiles, their specialty is terry.

The company has also developed some new technologies that it can apply to cotton fabrics to add performance properties. Read More

PODCAST

New Ways to Raise Capital When VC Funds are Harder to Get

In an environment where interest rates are continuing to rise, suddenly raising venture capital is not as easy as it used to be.

There are still investors looking for opportunities. The key is knowing where to find them.

In this podcast Ron Bauer, Founder of Theseus Capital Ltd and author of “Capital: Raising Money in a Digital World”, talks about what business owners need to know now to successfully secure funding.

You’ll Learn:

How performance expectations for startups have changed in the past year, from an investor’s point of view.
How any entrepreneur can reach new investors and raise the capital they need (even if you’re not slated to be the next unicorn).
Classic mistakes founders make when pitching investors that can cost them the deal.

🎧 LISTEN TO THE PODCAST

MARKETS

The Eurozone will avoid a recession this year, according to a widely watched survey from Consensus Economics. There is now less than a 30% chance of a recession, down from the estimated 90% last summer, per UBS.

US growth slowed marginally to 2.9% on an annualized basis in the last quarter of 2022, as the country’s economy proved more resilient than expected after interest rate rises, per the Department of Commerce.

Confidence is growing that UK inflation will ease markedly through 2023 and 2024, per Investec.

MATERIALS

The reopening of the Chinese economy has given markets reasons to be optimistic about a rebound in crude consumption, cotton and other raw materials this year.

Month-on-month and year-on-year materials prices are available in our FTM briefing.