Orders continue to slow heading into peak season in an unanticipated reversal of fortunes that could finally see freight capacity (and rates) normalize.
LOGISTICS
Transpacific short-term rates are now 2.7% lower than contracted agreements, according to Xeneta data.
Falling transpacific ocean rates are a clear indicator that demand is decreasing out of Asia. Though still well above pre-pandemic norms – prices are trending down at a time they were already climbing on peak season demand a year ago, said Freightos.
Overall Asia-Europe is still relatively stable. Volumes are picking up heading into Q3, but without a major surge in volumes as of yet, said Flexport.
A growing number of retailers are concerned about overstocking. Target recently announced its intentions to cut its inventory orders because of its ballooning inventory.
The International Air Transportation Association (IATA) forecasts 2022 annual air cargo volume to reach 11.7% above pre-pandemic levels, said UPS.
SOURCING
India’s Big Opportunity
More brands have headed to India as pressures to avoid China’s Xinjiang cotton become more stringent.
Retailers and brands who previously avoided India (too slow, lack of efficiency, poor infrastructure) are starting to rethink India. The number is still small – but it’s coming up a lot more frequently in conversations about sourcing shifts. Read More
PODCAST
What the New Human-Centric Work Environment Could Be Like
A growing number of companies are trying to offer employees more flexible work environments.
But how can leadership manage to keep teams engaged and productivity up to speed when everyone seems to be working in different places and on different schedules?
And will what worked when people were trying to get through the pandemic crisis still be effective now that it looks like we’re finally heading back to normal?
In this podcast Sophie Wade, an authority on the future of work and author of Empathy Works, talks about providing a human-centric framework to help businesses grow in an era when the way we work is changing.
You’ll learn
- Ways to support employees and managers in a hybrid work environment.
- Burnout at the employee and leadership levels and what to do about it.
- How the new workplace will be more human-centric.
TARIFFS
The U.S. is considering repealing some tariffs on Chinese goods as part of an effort to curtail inflation.
Treasury Secretary Janet Yellen pointed out that some of the restrictions inherited from the Trump administration “serve no strategic purpose.”
MATERIALS
Materials prices eased as softening consumer demand has prompted brands to hold back on orders.
Price pressure has been a huge challenge for mills, especially as cotton prices surged. Yet some mills are taking a longer view of the market and investing in raising quality. Read More
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