As Shanghai is set to reopen there is cautious optimism about the normalization of ex-Asia trade – however a general feeling of uncertainty still prevails.
LOGISTICS
Shanghai is set to finally begin reopening on May 20, according to local media. The target date for a complete reopening has now been pushed to mid to late June.
- It could take anywhere from four to eight weeks for normal operations to resume, according to Xeneta, a container platform.
Authorities in China have imposed a de facto international travel ban, forbidding citizens from going overseas for non-essential reasons.
As the traditional peak season approaches, demand remains soft overall in the current Trans-Pacific market, said Flexport.
Some shippers are expecting a surge in exports due to pent up demand. However others think it might be less than anticipated as Western nations become more cautious in the face of a possible economic slowdown.
Port congestion in Shanghai and Ningbo are at the critical level while moderate in south China, Singapore, and Manila, per UPS.
New export orders out of the Asia Pacific region are declining due to China’s lockdown, putting more pressure on air cargo demand in the region, according to UPS.
PODCAST
Why Corporations Beat Startups for Innovation
The idea that startups are the right environment to cultivate innovation might be more myth than truth.
In fact, a lot of today’s leading innovation is coming from enterprises such as Microsoft, Bosch, NexisLexis, Analog, and of course Amazon, said Andrew Binns, co-founder of Change Logic, a US-based strategic advisory firm and co-author of ‘Corporate Explorers, How Corporations Beat Entrepreneurs at the Innovation Game’.
In this podcast episode Andrew talks about:
- Why a large corporation is a better place for innovation than a startup.
- Five ways that leadership can drive practical innovation within their organisations.
- The discipline practices that companies like Amazon use to drive successful innovation.
- Why Corporate Explorers are the key to igniting growth in your organization.
MANUFACTURING
Is Shein’s Model Really Unstoppable?
Shein has taken the fast fashion (and venture capital) world by storm. The company’s recent $100 billion valuation has positioned it as an ecommerce titan. So what could slow down Shein’s growth or challenge its market share? Several things could. Read More
MATERIALS
- Raw material supply has become an issue for many factories in Asian countries especially if their sources are coming from China.
- As China’s downstream spinning mills and weaving enterprises are gradually reopening, there was an uptick in demand for yarn and fiber this week.
- Synthetic fiber prices are getting some price support from surging oil prices.
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