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EU Links GSP to Sustainability; Russian Rail sees volumes surge; Power shortages hit chemical and fiber output; Ocean rates level off, Rail volumes from China to Europe surge

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The impact of meeting environmental goals is hitting the industries hard, putting governments in the uncomfortable position of having to balance sustainability with looming power shortages and rocketing energy prices.

LOGISTICS

Freight Rates Oct20

Ocean rates leveled off (but are still at record highs) during the past week to both the U.S. and Europe, allegedly due to factory slowdowns in China on the back of energy shortages. 

  • Analysts are skeptical that this isn’t simply a dip and that rates could start to rise again.

The ongoing lockdown in Vietnam is currently delaying goods by an average of 25 days from the nation’s ports.

Strong import demand, plus an earlier 2022 Chinese New Year, could keep ocean rates  high from China to North Europe at least through December. 

Rail volumes rose 47% on the China-Russia-Europe routes in the first nine months of 2021, driven by global shipping delays that boosted the appeal of rail routes across Russia.

The cost of shipping goods in containers by rail between Asia and Europe is now 3.5 times less than by ocean, per Russian Railways.

PODCAST

 

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In this episode of A Seat at The Table, MarTec expert Dan McGaw talks about:

  • Why ‘traction’ can be more important initially than sales or profits.
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SUSTAINABILITY

The European Commission has adopted the new EU’s Generalised Scheme of Preferences (GSP) for the period 2024-2034 that ties in meeting climate change and environmental protection standards as part of its criteria for GSP status.

MATERIALS

Materials Prices Oct20

Power shortages in China have reduced factory output of both chemicals and fibers driving up prices.

Wool prices are up 17.5% since January, but have retreated from the peak seen during June and July.

Crude oil prices retreated this week as the Chinese government announced that it would intervene on coal prices.

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