Rising raw materials prices are becoming a problem. Skyrocketing energy prices are potentially an even bigger problem.
LOGISTICS
Despite adding more transpacific space, logjams at ports remain a huge problem.
More brands are shifting to air cargo heading towards the holidays. Freightos data showed that Shanghai to US rates are 276% higher than before the pandemic, and have increased 19% in the past month.
AP Moller-Maersk said rising rates for ocean freight are unlikely to lose steam this year as the shipping group lifted its 2021 outlook again.
- It forecast global trade volumes to grow by 7-8% this year.
“Capacity in ports, warehouses and on ships is not fully utilised due to Covid-19.” – Soren Skou, chief executive of Maersk
ENERGY
The Chinese government will, for the first time ever, release part of the country’s strategic oil reserves into the market, conducting a bid for 7.38 million barrels of petroleum on Sept. 24, the National Food and Strategic Reserves Administration said in a notice.
- China aims to relieve the pressure from soaring commodities prices.
PODCAST
Cotton Price Outlook: Making Sense Out of the Market
While many analysts expect to see price increases as part of the fallout from the pandemic, others believe that higher costs are likely to linger – becoming another part of the new normal.
Dr. Terry Townsend has spent over 30 years analysing the cotton industry and shares his outlook for cotton prices, as well as what we should be watching.
SUSTAINABILITY
C.L.A.S.S. (Italy) has helped Duarte (Portugal) launch its new sustainable streetwear collection. Read More
TRADE AGREEMENTS
China has formally moved to join the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Chinese Ministry of Commerce said. It hopes to get this in place by Jan. 1, 2022.
The U.K. has also begun negotiations to become a CPTTP member.
Looking ahead, the first QUAD Summit is on Sept. 24, the G20 Rome Summit on Oct. 30 and 31, then COP26 (climate meeting) from Nov. 1-12.
MATERIALS
China’s August producer price index jumped 9.5% from a year earlier, putting factory gate inflation at a 13-year high.
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