The China Container Risk in Global Supply Chain and Foreign Trade
NC State SCRC
APRIL 10, 2024
As background, it is important to recognize the statements made by the People’s Republic of China relative to the global ocean freight channels.
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NC State SCRC
APRIL 10, 2024
As background, it is important to recognize the statements made by the People’s Republic of China relative to the global ocean freight channels.
Supply Chain Matters
DECEMBER 29, 2023
Multiple published reports, including China based media, indicate that global wide electric vehicle producer Tesla has acquired land to be able to construct and produce this provider’s Megapack battery packs. Additional Perspective The trade relationships and supply network specific protectionist policies among China and U.S.
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Freightos
SEPTEMBER 13, 2023
Air rates – Freightos Air index China – N. China – N. If demand is easing as capacity continues to increase, carriers will face further challenges to keeping rates elevated. Europe prices (FBX11 Weekly) fell 8% to $1,608/FEU. Asia-Mediterranean prices (FBX13 Weekly) fell 14% to $2,003/FEU. Europe – N.
Freightos
APRIL 2, 2024
Schedules were quickly disrupted and capacity shifted to China – Europe and North America lanes to accommodate the longer voyages. These changes made ocean capacity (and empty containers) scarce, sending container rates out of India spiking. That reached air cargo quickly.
Freightos
APRIL 25, 2024
This shift, which relies on the de minimis US customs regulation that waives direct to consumer packages worth under $800 dollars, is pushing air cargo rates up, and has significant implications for capacity, and regulatory landscapes. From Q3 2021 to early 2022, Freightos Air Index China-U.S. These rates dipped to around $3.50/kg
Supply Chain Matters
APRIL 11, 2023
Supply Chain Matters highlights reports indicating that Europe based Airbus will double China based aircraft final assembly output by 2024. The Announcement Commercial aircraft designer and manufacturer Airbus announced plans t o double the production of the company’s final assembly production capabilities within China.
Supply Chain Matters
APRIL 10, 2023
Supply Chain Matters highlights yesterday’s announcement that Tesla will construct and operate a Megapack storage battery production facility in China. The Announcement Tesla indicated plans to construct and operate a large scale battery production facility in Shanghai , China. All rights reserved.
Freightos
SEPTEMBER 6, 2023
Air rates – Freightos Air index China – N. kg China – N. Freightos Air Index data shows ex-Asia and transatlantic rates remain more than 40% lower than a year ago though China – N. Europe prices (FBX11 Weekly) were level at $1,744/FEU. Asia-Mediterranean prices (FBX13 Weekly) increased 1% to $2,338/FEU.
Resilinc
JANUARY 16, 2023
After running the game 24 times in seven hours, the group found that the United States, Taiwan, Japan, and other allies would likely defeat China and preserve Taiwan’s independence—but at enormous costs. How can the US prepare for a China-Taiwan war? What will happen to semiconductors if China invades Taiwan?
Freightos
SEPTEMBER 26, 2023
Air rates – Freightos Air Index China – N. kg China – N. Taken together with reports that utilization levels are over 90% to the West Coast, though closer to 80% to the East Coast, spot rates still above contract levels and likely above break-even mean carriers – for now – are managing transpac capacity successfully.
Freightos
FEBRUARY 28, 2024
Most recently, the recent disruptions in the Red Sea that saw ocean freight rates from China to Europe by over 190% and saw transit times lengthen, sea-air services offered a strategic advantage for logistics professionals able to remain agile, by watching trends and jumping at opportunities to ensure a resilient supply chain.
Logistics Viewpoints
FEBRUARY 2, 2024
UPS is seeking alternative strategies for its truck brokerage business, which has seen sales plummet amid a freight recession marked by declining rates and over capacity. technology from helping China’s military. Amazon achieved its fastest-ever global shipping times last year but isn’t resting on its laurels.
Logistics Viewpoints
OCTOBER 18, 2023
I also looked at changes in exports by the US, Europe, and China. The major takeaway is that there is little insight gained from this additional breakdown, except for maybe a more recent slowdown and amplified return to growth from China exports. However, China and the US were among the 8 countries where output increased.
Freightos
SEPTEMBER 20, 2023
Air rates – Freightos Air index China – N. kg China – N. And while capacity is not typically removed after Golden Week, this year a record 14% of scheduled sailings have been blanked on this lane so far, indicating falling demand here as well. compared to 2022 while capacity will climb 8%.
Resilinc
JANUARY 24, 2022
But it was featured on CNN Business and in other business media because it had traveled 6,000 miles from Xian China and represented a growing trend in China-Europe supply chains: shifting a portion of container traffic away from pricey and congested ocean shipping lanes to rail. It’s growing dramatically however.
Freightos
OCTOBER 25, 2023
Air rates – Freightos Air Index China – N. kg China – N. Demand continues to ease into the typical post-peak season pre-Lunar New Year lull, but transpacific rates may be leveling off at a new floor as carriers work to reduce capacity. Europe prices (FBX11 Weekly) increased 3% to $978/FEU. Europe – N.
GlobalTranz
JUNE 13, 2016
However, inconsistencies in service levels, including the use of inaccurate data, an economy that hinges on the state of foreign markets (think China), and changes to regulations and labor requirements are continuing to impact the capacity of the shipping industry. Capacity Is Tight, Not Impossible. Cassidy of JOC.com.
Turvo
OCTOBER 5, 2021
Continuing trade imbalance between the US and China has resulted in squeezing container availability further. Last year, China already announced that it was taking steps to increase the supply of containers. The association said China has been producing 300,000 TEUs a month since September to alleviate the shortage.
Exiger Perspectives
JULY 14, 2023
The metals — gallium and germanium — will be subject to unspecified export controls beginning August 1, China announced on July 3. supply of both metals comes directly from China. With existing domestic deposits and expanding processing capacity, Exiger’s research and analysis suggests that the U.S. In the U.S.,
Supply Chain Matters
AUGUST 24, 2022
Supply Chain Matters provides our readers added perspectives on this week’s reports indicating that Apple has initiated plans for production of the upcoming new model iPhone14 to be sourced from both China and India. That would allow such sites the ability to foster independent processes from that of China.
Logistics Bureau
APRIL 2, 2020
China says almost all of its major industrial companies have resumed production and that its ports are again running at near-full capacity after a two-month Coronavirus-linked shutdown. When it comes to air freight, global capacity is down 22 percent compared to last year, with further declines expected. Air Freight.
Freightos
OCTOBER 31, 2023
Air rates – Freightos Air Index China – N. kg China – N. This relative stability shows carriers are having some success creating a new price floor through capacity reductions even as volumes ease and fleet sizes grow. Freightos Air Index China – N. America weekly prices decreased 2% to $4.73/kg
Logistics Viewpoints
NOVEMBER 17, 2022
The deepening power crisis has already taken 900,000 tons of smelting capacity offline in North America and Europe. With more than a third of global smelters losing money, there is a risk of 1 million tons of capacity being curtailed in the near future. About 73% of the aluminum cans in the US come from recycled scrap.
Freightos
OCTOBER 4, 2023
Air rates – Freightos Air Index China – N. kg China – N. There were more reports of upticks in ex-Asia air cargo demand the last few weeks, and Freightos Air Index data saw China – N. Europe prices (FBX11 Weekly) ticked up 2% to $1,020/FEU. Asia-Mediterranean prices (FBX13 Weekly) fell 9% to $1,587/FEU.
Supply Chain Matters
APRIL 10, 2024
Background Throughout 2022 and 2023, we have highlighted for readers the various indications of Apple’s unfolding China Plus sourcing moves. That culminated in our research arm’s published December 2023 Supply Chain Matters update, Apple’s Unfolding China Plus Sourcing Strategy for iPhone Production.
Supply Chain Movement
OCTOBER 12, 2023
In August, China published disappointing trade figures showing that both imports and exports had fallen more sharply than economists had expected in the month of July. This is also having an increasing impact on China’s exports and, consequently, its imports of Western goods due to the growing economic uncertainty in that country.
The Logistics & Supply Chain Management Society
APRIL 19, 2023
Major Trends: Volatile Production, Capacity Crisis & The Need for EV Automotive manufacturing is experiencing a huge global transformation compared to the past. In mainland China, however, automotive production volume is on the rise. In 2022, mainland China’s vehicle production was approximately 26.1 million cars.
GlobalTranz
OCTOBER 21, 2016
Capacity Will Grow Tighter. Capacity was stretched beyond limitations in 2014, and fleets around the country tried to optimize operations through freight reclassification, dimensional pricing models and freight consolidation, explains Jeff Berman of Logistics Management. The ELD mandate will further worsen the coming capacity crunch.
MIT Supply Chain
AUGUST 5, 2021
Issues that attracted attention before the coronavirus hit, such as the impact of trade wars and how to shift production out of China, have been pushed off companies’ radar screens by recency bias. In this article, we introduce the seven core capacities that are the building blocks of resilient supply chains.
The Logistics & Supply Chain Management Society
FEBRUARY 15, 2021
And the lack of demand visibility is a big contributor to China-US ocean freight rates doubling to the West Coast since June, and passing USD4,000/FEU to the East Coast – which was surprising as most analysts thought that rates and profits would freefall. It took carriers months to adjust capacity to the new low-demand reality.
Freightos
SEPTEMBER 8, 2020
And the lack of demand visibility is a big contributor to China-US ocean freight rates doubling to the West Coast since June, and passing $4,000/FEU to the East Coast – which was surprising as most analysts thought that rates and profits would freefall. It took carriers months to adjust capacity to the new low-demand reality.
CH Robinson Transportfolio
AUGUST 27, 2020
This drop in capacity resulted in demand outweighing supply and therefore, air prices multiplying as global trade needed to continue. This, coupled with the increased demand for personal protective equipment (PPE) from China, resulted in the general cargo market becoming a charter market, while passenger restrictions increased.
Logistics Viewpoints
MAY 23, 2022
While conditions have eased in North America, port congestion has gotten much worse in China. China accounts for about 12% of global trade. China’s stringent COVID lockdown in critical port cities has impacted global supply chains. They have a fleet of over 250 container ships and a transport capacity of 1.8 million TEUs.
Supply Chain Brain
JANUARY 30, 2024
The China Electricity Council said that wind and solar energy would make up about 40% of installed power generation capacity in 2024, compared to coal's 37% capacity.
Freightos
JANUARY 16, 2018
2018 started with China-US ocean freight prices increasing by 27% as supply chains came back into full swing. Some forwarders reliant on the spot market are steeply increasing ocean pricing from China. That said, ocean prices for shipping out of China are still well down on this time last year. China-US West Coast.
Material Handling & Logistics
AUGUST 16, 2017
China aims to extend its logistics reach from the Pacific to the Atlantic through its One Belt, One Road initiative. Like the country itself, China’s ambitions are massive. The expansive plan covers roads, rail lines, ports and airports that will link East China through Southeast, South and Central Asia extending to Europe.
Logistics Bureau
APRIL 20, 2020
COVID-19 and the Future of China Sourcing and Manufacture. Dun & Bradstreet researchers , for example say 51,000 companies, 163 of which are in the Fortune 1000, have “tier 1” suppliers in China, while at least 5 million have one or more “tier 2? Factors That Could Complicate Departure From China.
The Logistics & Supply Chain Management Society
MARCH 16, 2021
Without a doubt 2020 will be etched in our memories as the year of multiple disasters, with the Covid-19 pandemic, trade issues between the US and China, wildfires in Australia, social unrest in Hong Kong, drastic declines in oil prices, turbulent financial markets and other politically dominated issues in emerging markets.
Vanguard Software
FEBRUARY 10, 2020
Many supply chains based in Wuhan, China and the surrounding areas are grinding to a halt in the midst of coronavirus concerns.
Logistics Viewpoints
MARCH 3, 2023
The air cargo industry has seen softer market rates due to increased capacity and shippers flocking back to ocean freight services. Trade between China and Canada hit record levels in 2022, with imports breaking the $100-billion mark for the first time, Statistics Canada data show. FedEx Express moves an average of 6.3
Supply Chain Matters
AUGUST 30, 2023
Among the paper’s various findings were some key observations that we noted: China ’s share of S. At the same time the authors qualify that while China ’s share of U.S. sourcing from China, with a correspondingly rise in import share from low-wage locations, chiefly Vietnam, and regional trade areas, particularly Mexico.”
Intelligent Audit
MAY 21, 2020
Not only have they affected shipping times but capacity – particularly air cargo capacity – has become limited as well. These capacity limitations are apparently causing carriers like FedEx to incur additional costs, making it necessary to increase surcharges for certain services. China (Parcel). Parcel Min.
NC State SCRC
DECEMBER 15, 2022
However, I’ve been hearing more and more stories about how the rapid over-expansion of many brands and retailers in 2021 has proven to result in all kinds of problems, specifically around additional inventory, excess capacity, and over-expansion of the workforce.
Supply Chain Matters
APRIL 5, 2024
Growth expansion has returned across China and the U.S. New order growth reportedly accelerated at the fastest in nearly three plus year, which is a likely indication that this region has become the new go-to for China Plus product sourcing strategies. along with Vietnam, Thailand and Indonesia. The March value further represented a 2.2
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