“Everyday you choose to hold an asset, you’re also choosing to buy it. Would you buy the assets you own at current prices? If the answer is no, then you should sell.” – New York Real Estate mogul, Sam Zell.
LOGISTICS
A decrease in volumes as well as easing congestion at US West Coast ports has pushed Asia – US West Coast rates down by more than 80% since the end of April, while East Coast prices have fallen by almost two-thirds, per Freightos.
China to North American demand still remains flat, with no increased demand in the week after the Golden Week holiday, said Flexport.
China to Europe space is readily available but schedule reliability is affected due to blank sailings, per Flexport.
Growth forecasts for Indian exports have been challenged by the dual headwinds of adverse geopolitical factors and rising inflationary pressures plaguing larger economies.
Intra Asia rates slide on slowing demand and geopolitical tensions.
Growth in container shipping capacity over the next two years is outstripping demand as the global economic outlook darkens, per the Journal of Commerce.
Drewry lowered its demand outlook for 2022 to 1.5%, and to 1.9% for 2023 on growing news that most nations are heading into a recession.
ENERGY
OPEC slashed its global oil demand growth forecasts this week for 2022 and 2023, citing high inflation, stalling growth in developed economies, and China’s Covid lockdowns.
The US Energy Department lowered its expectations for US and global oil consumption, seeing US consumption rising slightly by 0.9% in 2023 from a previous forecast of 1.7% while projecting global consumption to increase just 1.5% from an earlier forecast of 2%.
A snapshot of key shifts and developments in Asian sourcing – all in our INSIDE SOURCING October report. READ MORE
MATERIALS SOURCING
Creating Innovative, High Quality Yarn from Natural Fibers
It’s not always easy to develop high-end yarn, while also meeting the demand for both innovation and natural fibers.
“Normally OE (open end) yarns use shorter fiber lengths, however we use longer fibers to raise the quality,” said Apinun Kongkiatkrai at Kongkiat Textile Co. Ltd.
That prompted the mill to experiment with blending a variety of natural materials with cotton to create new products with big consumer appeal. READ MORE
PODCAST
Why Hyper Automation is the Next Big Thing in AI
AI is one of the most talked about technologies. There’s a lot that AI can do and even more that it will be able to do … but it has its limitations too.
In this podcast Robb Wilson, founder, lead designer, and chief technologist behind OneReach.ai shares a true insider’s view about what is the next big use case for AI.
You’ll Learn:
- 5 ways that AI is programming us and how to stop it.
- 3 questions to ask when charting a course toward hyper automation in your organization.
- Common myths about conversational AI.
MARKETS
US Federal Reserve minutes indicated that it is committed to raising interest rates to restrictive levels and holding them there until inflation recedes.
- The minutes emphasized the cost of taking too little action to bring down inflation likely outweighed the cost of taking too much action.
- The US consumer price index rose by 8.2% year-on-year in September.
The International Monetary Fund’s World Economic Outlook predicts global economic growth will slow to 2.7% next year from an already weak 3.2% in 2022.
UK unemployment has fallen to the lowest level since 1974, however real wages have fallen due to inflation, per data from the Office for National Statistics.
The US is heading for recession within months, according to Jamie Dimon, the head of JP Morgan. He warned of ‘a very, very serious’ mix of headwinds.
MATERIALS
Prices remained fairly flat as global demand continues to weaken and buyers tighten up on inventories.
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