The next supply chain impact could be oil prices, which are forecast to reach $93/b in Q4 and $95/b in 2023, per the EIA.
LOGISTICS
Carriers have increased the number of canceled Transpacific and Asia to Europe sailings for the coming weeks as demand decreases, per Freightos.
Congestion at the US West Coast ports is softening, while congestion at the East Coast and Gulf ports has been increasing, as shippers seek to avoid the labor negotiations on the West Coast, per UPS.
Air cargo rates from China to both Europe and the US are level at a time they were climbing last year, and are also significantly lower than a year ago, per Freightos Air Index data.
- China – US rates of $5.50/kg are 48% lower than last year, while China – N. Europe prices of $5.15/kg are 25% lower than last year.
On Asia to Europe routes space is readily available but schedule reliability continues to be affected by port congestion, per Flexport.
Indian Subcontinent rates are continuing to drop, but are still well above pre-pandemic levels on some key port pairings, said Flexport.
SUPPLY CHAINS
There is increased potential for an easing of global factory price pressures following a recent moderation of supply chain pressures and the weakening demand environment.
However, the softening of demand, ongoing COVID-19 containment measures in mainland China, uncertainty regarding Russia and energy supply issues in Europe all remain major concerns for the economic outlook, per S&P Global.
A snapshot view of key developments in Asia sourcing – all in our INSIDE SOURCING October report. Read more
MATERIALS SOURCING
Scaling Down to Focus on Higher Quality & Flexibility
Most manufacturers focus on growth. Like other businesses, they believe ‘bigger is better’. However there’s an advantage to consolidating rather than expanding -and that certainly has been the case with Jong Pattana.
In recent years the company downsized its capacity by about 60 percent, choosing to move away from big volume, price sensitive orders and building its strength as an ideal supplier for mid-tier brands that require very flexible and reliable production.
What really makes Jong Pattana stand out from its competitors is that it can accept any order -regardless of how small. READ MORE
PODCAST
The Core Values Behind Every Great Leader
There’s ongoing debate over which leadership playbook is the best way – and what skills are most important to develop in order to effectively lead an organisation – especially in what looks to be uncertain times .
But what if we didn’t need ‘new skills’. What if the answer lay in going back to core values, character building and even old fashioned ethics?
In this podcast Maria Kelly, executive coach, mentor and business consultant, talks about the simple values that define great leaders.
You’ll Learn:
- The most important skill today’s leaders need to have.
- The critical importance of being decisive.
- Why good leadership often rests on simply being courageous.
MATERIALS
Wool prices rebounded to late August levels after a 7.6% drop in September and October.
The latest report from the US Department of Agriculture indicated global cotton production is forecast at 118.1 million bales in 2022/23, 2% above the previous year.
Yarn prices remained flat this week.
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