Virtual Reality (VR) was once hailed as the next big tech thing. Turned out it wasn’t. AI is – at least for now.
- Meta’s Reality Labs division had lost more than $21 billion since the start of last year. In each quarter in 2023 losses have ranged from $3.74 billion to $4 billion.
- ByteDance (parent of TikTok) has announced staff cuts and a sweeping restructuring plan, per the Financial Times.
- Global shipments of VR devices fell 44.6% in Q2, the fourth consecutive quarter of declines, per IDC.
LOGISTICS
Ex-Asia ocean rates climbed across the board last week on early-month GRIs and further capacity reductions., per Freightos.
The Panama Canal Authority will reduce daily transits to about half their normal level over the next three months, however this is unlikely to cause significant delays, per Freightos.
Starting in January, the Suez Canal will increase northbound fees by 15% or up to $100,000 per vessel, which could increase costs for Asia – Europe shippers or lead to some additional West Coast or Panama Canal traffic from transpacific volumes as carriers seek to reduce costs, per the American Journal of Transportation.
Surging e-commerce demand is creating a peak season for air cargo that no one saw coming. It’s become difficult to find space on China-US routes now, per the Journal of Commerce.
Month-on-Month ocean and air rate changes … new services … seasonal outlook. Read More
SUPPLY CHAIN TECHNOLOGY
The Newest Supply Chain is IT
IT (information technology) is changing from an in-house operation to a supply chain of third party cloud-based services. The change is helping companies to collect more data, better data – and to do faster and better analysis of it.
This is changing the role of IT management. From security and compliance to designing cloud-based supply chains and managing third party vendors, IT departments are likely to see some restructuring. Read more
PODCAST
Sharpening Your End-to-End Supply Chain Visibility (without huge Capex spending)
Everyone wants great supply chain visibility, however most companies are hesitant to commit huge capex budgets to achieve this.
New innovations in cloud-based software are now enabling companies to get better insights into their supply chains, with less investment.
In this podcast Jonathan Porter, the founder and CEO of PorterLogic, a low code application platform specializing in supply chain technology, talks about how to integrate new SaaS solutions into your legacy systems – to save both time and money.
You’ll Learn:
- The importance of leveraging data and artificial intelligence (AI) in optimizing supply chain operations.
- Strategies for identifying and addressing pain points in supply chain management systems.
- The significance of integration and connectivity between various supply chain systems for effective communication.
- Insights into the advancements and challenges of AI technology in the supply chain industry.
- Techniques for predicting customer demand and making informed strategic decisions based on scenario analysis and data integration.
MATERIALS
- Cotton futures eased to around 79 cents per pound, their lowest since late June, amid persistent concerns over demand amidst global uncertainties.
- WTI crude futures traded at around $77.5 per barrel, hovering at a three-month low, due to anticipated reduced demand and increased supply.
- Yarn prices remained stable due to lower demand.
You can find the current Month-on-Month and Year-on-Year prices here.
MARKETS
Central banks are divided as to how they might react should there be significant increases in oil and gas prices, per the Financial Times.
- Some central banks argue that energy price increases have only a transitory effect on inflation. Thus, no need to raise interest rates further.
The International Monetary Fund has raised its forecasts for China’s economic growth, citing stronger policy support from Beijing. This is the first hint of cautious optimism.
Bank of England’s chief economist, Huw Pill, suggested interest rates could be cut in the middle of next year.
The 0.3% drop in Eurozone retail sales in September confirms a continued weak consumption environment for goods. ING Bank is forecasting this will continue in Q4 and Q1 2024.
US households and businesses remain wary of taking on additional borrowing, per a Federal Reserve Senior Loan Officer Opinion Survey.
CURRENCIES
- The euro and the pound inched down during the past week, as did the yen and the Chinese yuan.
- India’s rupee remained fairly stable week-on-week.
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