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Extreme weather’s impact on supply chains

Resilinc

Within a week of the COP26 conference wrapping up, massive floods in British Columbia severed the freight railroad serving the Vancouver, home of Canada’s largest port. Then the drought eased in June, only to be followed by extreme rains, flooding, and landslides.

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Navigating Global Supply Chain Disruptions: Strategies for Resilience

SCMDOJO

The price of container freight rates surged while the entire world was having to deal with delays. Japan and Taiwan have earthquakes often, and they both are some of the leading suppliers of microchips. Read more about The Challenges and Opportunities of Implementing Artificial Intelligence in Procurement at our website SCMDOJO!

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Federal Reserve GSPI Index Drops Significantly in April

Supply Chain Matters

The authors further observed that there was a notable upward contribution from Taiwan stocks of purchases. freight and logistics recession , we called attention to reports that the Logistics Manager Index (LMI) for April reached an all-time low of 50.9, characterized as the lowest reported reading in this index’s history.

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Peloton’s Supply Chain Strategy Turnabout

Supply Chain Matters

The company will henceforth outsource the manufacturing of its stationary exercise bikes and treadmills to a Taiwan based contract manufacturer. The company was eventually forced to transport its bikes and equipment by more expensive air freight to avoid congested U.S. port backups, which added to overall costs and diluted margins. .

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Global Manufacturing Activity Levels Continue to Stabilize in March and Q1-2023

Supply Chain Matters

Taiwan Taiwan’s activity as reflected in the S&P Global Taiwan Manufacturing PMI® March report indicated a milder deterioration in production operating conditions. Some transportation services executives now open describe a freight rate recession. The March value of 48.6 was down marginally from February’s 49.0

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Added Evidence of Emerging Regionalization of Global Supply Networks

Supply Chain Matters

The report reinforces that formerly Taiwan based assemblers still support a lot of production volume within China, but they are also supporting the majority of China Plus sourcing actions. An example noted are Foxconn ’s plans to establish a MacBooks production facility in Vietnam in a campus the size of 93 football fields.

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OPEC Or The Chinese New Year? Freight Prices Going Forward

Freightos

Freight Prices Going Forward. But even though this is effectively limiting production of 1% of the world’s global oil supply , it won’t impact freight prices. Looking back at ocean freight prices as a function of Brent crude oil in 2015, the correlation between fuel prices and freight prices is minuscule (-0.2