Surging consumer demand played a key role in the escalation of freight rates. We’ll be watching to see if that demand will remain as strong after the holiday season.
LOGISTICS
For the first time since June, there are reports that many transpacific bookings can be made without paying premiums, suggesting drops in premiums are contributors to the current freight rate decreases, according to Freightos.
US retail ocean import volumes show moderate short-term easing, however demand is expected to remain extremely elevated – 30% higher than November-December volumes in 2019 – through the end of the year, according to an NRF analysis.
Ocean delays are pushing some shipments to air, with peak season air cargo rates continuing to climb, said Freightos.
Port conditions are improving, but remain overwhelmed.
SUPPLY CHAINS
Adidas (Germany) has warned of a US$1.2 billion hit to sales from factory closures in Vietnam and supply bottlenecks that it expects to affect business into next year.
- adidas had lost capacity for a million items in the second half of 2021.
- The situation was worsened by significant logistics delays.
China’s factory gate inflation has hit a 26-year high as makers of components and finished goods pass on rises in the costs of energy and raw materials.
- Producer prices increased 13.5% in the 10 months to October, up from a 10.7% jump recorded for September.
PODCAST
How New D2C Brands are Changing The Industry
Digital Native and D2C brands, as an aggregate, are becoming a market force. In this podcast, Kevin Lynk, CEO of Creare, a New York-based apparel agency, talks about:
- What new brands need from suppliers – and how suppliers can leverage this to build customer loyalty.
- How D2C brands are setting new industry standards for sustainability and CSR.
- Key shifts that are redefining the apparel industry – for the better!
SUSTAINABILITY
Allbirds (USA) dropped its claims to be the first ‘sustainable’ IPO after the Securities and Exchange Commission objected.
Crystal International (Hong Kong) has increased its commitment to renewable energy by adding solar panels to two more of its factories in Vietnam, while evaluating the viability of adding them to other facilities. Read more
MATERIALS
Materials prices have begun to retreat now that we are past peak season and all holiday goods have been produced.
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