Logistics seem to face a never ending series of disasters with new and unexpected ‘events’ springing up around the world.
LOGISTICS
The Crisis of the Week …
- Floods in the EU, fires in Canada and civil unrest in South Africa are the newest disruptors to global logistics, coming just as the situation with the Yantian port has cleared up.
- Not to be outdone, Southeast Asia is reeling under continued waves of COVID that are undermining manufacturing and logistics – even in previously ‘safe’ places such as Vietnam, said Freightos.
- In the US, Union Pacific Railroad announced a one-week suspension of service from West Coast ports to its inland rail hub in Chicago to allow time to address congestion from backlogged imports, according to Flexport.
- From India to North America rates are continuing to climb, even after two rate hikes in July, said Flexport.
MANUFACTURING
The Asia Floor Wage Alliance (AFWA), a pan-Asian labour rights group, says it is using legal challenges to argue that global clothing brands should be considered joint employers, along with their suppliers, under national laws and be held accountable for alleged wage violations during the Covid-19 pandemic.
- Two of these complaints have already been filed with the authorities in India and Sri Lanka, with further complaints pending in Indonesia and Pakistan.
Leading international brands are holding out on the renewal of a long term Bangladesh safety accord. The sticking point is said to be wanting to avoid direct liabilities.
– Only five of the original signatories have signed. The deadline is August 31.
PODCAST
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TRADE ISSUES
The U.S. Senate passed legislation to ban the import of products from China’s Xinjiang region, the latest effort in Washington to punish Beijing for what U.S. officials say is an ongoing genocide against Uyghurs and other Muslim groups, Reuters reported.
- The bill must also pass the House of Representatives before it can be sent to the White House for President Joe Biden to sign into law. It was not immediately clear when that might take place.
MATERIALS
Oil prices are rebounding from a fall of about 7% on Monday, after a deal by Opec+ to boost supply by 400,000 barrels per day from August through to December.
- The supply boost was a move expected to help cool the runaway rise in the cost of crude.
- Prices rose more than 4% on Wednesday as improved risk appetite provided support despite data showing an unexpected rise in US inventories.
