An easing of consumer demand could turn the tables on rising costs, but leave a growing number of retailers with excess inventory.
LOGISTICS
Rates continue to fall on Transpacific routes as demand remains soft relative to capacity available, said Flexport.
Shipping activity has resumed in Shanghai, although the strength and timing of the volumes rebounding after two months of Covid-19 related lockdowns remains unclear, said Flexport.
The potential surge of pent up volumes out of Shanghai hasn’t materialized yet, said Freightos, pointing out that freight remained level during the past week.
Uncertainties on a macro level such as the Ukraine conflict, high inflation across Europe and low consumer confidence are playing a role in actual demand levels, said Flexport.
Asia – N. Europe prices are now down year on year for the first time since mid-2020, said Freightos.
SUSTAINABILITY
Sourcing sustainable cotton yarns has become increasingly difficult. Finding yarns that also have the kind of newness that enables brands to ‘tell a story’ is even more challenging. However one spinner is meeting the demand. Read More
PODCAST
How Brands Can Win on Amazon – and Still Maintain their Margins
Amazon tends to be the elephant in the ecommerce room.
The platform has massive amounts of traffic – which attracts a huge number of sellers to its marketplace, but being able to drive sales on Amazon is getting increasingly difficult – and expensive.
In this podcast you’ll learn:
- How sellers can succeed on Amazon without making a massive investment.
- What sellers need to know to successfully navigate the ‘Amazon Beast’.
- What best selling products on Amazon have in common.
- How even smaller brands can succeed on Amazon – despite the competition.
SOURCING OUTLOOK
Brands are trying to find the right strategy for Asian sourcing in the face of ongoing challenges.
While logistics could be starting to ease, working with China has become more complicated – on several fronts.
Hong Kong’s continued travel restrictions are pushing sourcing executives to find workarounds. At the same time, there’s a bigger push to open more countries. Read More
ENERGY
Deteriorating economic data from around the globe has had little, if any, impact on energy markets in recent weeks, according to the DailyFX. The focus remains on the ebb-and-flow of demand coming out of China.
Traders see oil prices remaining strong into 2023 as supply struggles to keep up with demand.
MATERIALS
Materials prices leveled off this week as concerns over weakening consumer demand impacted the market.
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