Newsletter Blast: CNY & Olympics Begins, USA Products, and a little Culture & Global Freight News External
Good Monday Afternoon! Chinese New Year has started which means that factories are closed down until mid to late February. For the Buyers who are hoping to still quote, please note City Global has many USA-based domestic factories that can quote & prototype in the meantime. Please note ideally factories (in Asia) will not be able to start prototyping until the first week of March. No worries, City Global is partnered up with quite a bit of USA vendors ranging from Barware / Drinkware, Apparel, Premium Novelty items & more!
We can only hope the rebrands you’ve worked on weren’t ruined by local news helicopters. But also, really? The Washington Commanders? Looking ahead: The work is only just beginning, brand experts say, as the franchise must now determine how best to harness the new name and continue telling a compelling story to fans ahead of the fall football season.
On the market: Here’s a guide for connecting with Valentine’s Day shoppers this year on Facebook Marketplace.
And it’s Black History Month! City Global is striving to increase our DE&I with our factories and brands both domestically and abroad. Here are 3 strategies to promote racial equity, meet the needs of Black Americans and create value.
In today’s edition:
Latest Cultural & Marketing News
Latest CNY updates re: Sourcing & Freight
USA products that are available for prototyping now
The Short Shrift.
Reading between the lines. 'That noise you hear thundering across the brandscape? That’s the hoofbeat of collaborations crescendoing to a deafening roar. Whereas brand partnerships used to be sparing, targeted, special even––we see now a feeding frenzy of collaborative cross-pollination.'
Stay in the know:Read the report here...
Is confidence a cult? Restaurant critics’ indoor dining anxieties. The rich niche. Nobody asked for candy with anxiety. The Economist on drinking in the office. Open your mind to meditative art. Soda bars (instead of actual bars).
Terry Gross’ 2018 interview with André Leon Talley
Is wonderful, and fully worth the 30-minute listen. NPR
Vegan travel ain’t fringe anymore
From Mexico to Greece, vegan hotels, restaurants, and tours are surging. NYT
Scott Galloway on what distinguishes entrepreneurs
From liars. Marker
The art of fasting
In a season of abstinence, take a lesson from Ethiopia. The Economist
WHAT ELSE IS BREWING
Shake Shack and DoorDash have teamed up to create a limited-edition, buffalo chicken sandwich–themed dating site called Eat Cute.
Super Bowl tickets will come with free, commemorative NFTs from the NFL.
Spotify reported an increase in users and advertising revenue in Q4 as it continues to grapple with criticism over star Joe Rogan’s podcast.
Facebook’s daily active users declined for the first time in the company’s history during Q4 2021.
Olive oil has its moment.
As they often do, ThingTesting recently published a handy roundup of brands making moves in a certain category. This time, it's, yes, olive oil. Details here: “Vachon is one of a growing crop of brands making the case for better olive oil. DTC darling Brightland made a name for itself in 2018 when it launched its bottles of Instagrammable, made-in-California olive oils…Sant’Ana, launched in March, infuses Cretan olive oil with CBD flowers in California, while Wonder Valley, another Californian brand, sells its hand-harvested olive oil as both a foodstuff and in skincare formulations…London olive oil brand Onsuri works with a single Jordanian farm, based in the Middle East’s 'Fertile Crescent,' to create its range of oils.” Nice little report there.
Omicron Drives Rail Volume Decline Supply Chain Dive reports that the rise in Omicron cases have led to staffing challenges within rail service. In addition to disrupted service, cumulative volume across railroads declined approximately 4.5% in the first three weeks of 2022, as compared to 2021. Still, demand for rail is expected to remain high as shippers try to avoid high trucking prices.
Factory Output News
Vietnam Fitch Ratings expect Vietnam growth to increase to 7.9% in 2022 and 6.5% in 2023 as domestic demand rebounds and export remains strong Source
Cambodia and the United Arab Emirates are in discussions of a bilateral FTA Source
Malaysia AirAsia has signed a partnership agreement with French logistic firm Geodis to provide regular dedicated scheduled cargo flights Source
Singapore signed a MOU with Colombia to promote export of goods and services Source
Indonesia plans to penetrate Australia’s automotive industry within the first quarter of 2022 Source
India Electronic exports increased by 49% in April-Dec 2021 compared to the same period in 2020 Source
Asia → North America (TPEB)
Destination delays and sliding departures at origin are continuing to bring on-time performance and schedule reliability to historical lows. Congestion and trucking capacity shortages remain severe. Shippers with urgent cargo, or those working to replenish depleted inventories, are still willing to pay premium rates for space. Covid-related labor shortages and uncertainties surrounding when production will resume at origin remain at play. Demand is expected to remain strong in the coming months on TPEB.
Rates Rate levels remain elevated, and the premium market is strong.
Space Critical
Capacity/Equipment Critical/Severe Undercapacity
Recommendation Book at least 2-4 weeks prior to CRD. Consider premium options and carrier IPIs through the PSW gateway. Be flexible in regard to equipment and routings.
Asia → Europe (FEWB)
Space and equipment crunches continue into the Lunar New Year period as market demand consistently exceeds supply. Space and equipment remain tight due to frequent blank sailings and port omissions. The situation is exacerbated by the trucking shortage at origin. Carriers are overcommitted and are limiting booking acceptance or rolling shipments. With continuous vessel delays and shifts, schedule reliability is very low and delays for pre-LNY sailings will have a significant impact into the post-LNY period. This week, many factories in China are already starting to close down for the holidays.
Rates Rates have increased slightly during January in the lead up to the pre-LNY peak season. Majority of carriers extended rates until mid-February.
Space difficult space situation
Capacity/Equipment Severe equipment shortage across all Asia origins.
Recommendation Book at least 3 to 4 weeks prior to CRD. Consider premium options, which may be limited. Be flexible in regard to equipment.
Indian Subcontinent → North America
Demand for space is increasing as we begin ISC’s traditional peak season. This time period is the last quarter of India’s financial calendar where we see demand rise as manufacturers look for a strong close to their books to end the year.
Rates remain at current levels. Multiple carriers expected to implement GRI for 2H Feb.
Space to the USWC is and will remain a challenge into 2022. Port omissions on services to the USWC continue to cut capacity out of the ISC. Recommendation is to move on premium services or look for alternative routing to USEC and transload to final destination.
Space to the USEC will be difficult from mid to end of February as bunched vessels off the coast of USEC is resulting in longer turn-around time back to origin. This leaves a gap of sailings for the most consistent services typically relied upon for ISC-USEC
Equipment remains a challenge at smaller Indian ports in the South and South-East as well as inland container depots (ICDs). Carriers are encouraging shippers’ use of their own origin carriage services to mitigate equipment shortages. Equipment is normalized at key ports such as Nhava Sheva and Mundra. Recommendation remains to load via wet port instead of using ICDs to avoid delays and accessorial fees.
Americas
Demand to Asia will decrease during CNY while Europe and Latam will remain stable.
Capacity is manageable and airlines are back on schedule after cancellations due the weekend Nor'easter.
LAX/ORD/JFK terminals have slightly reduced the inbound backlog cargo, which has a positive effect on the export side.
Larger shipments from major outbound gateways can take 2 to 3 days from booking to uplift.
Most terminals provide reduced free time for storage, and have earlier close-outs for exports to accommodate throughput times and screening requirements.
Rates to Latam, Europe and Asia have not experienced significant changes, but fuel is slightly higher.
Congestion at the European hubs keeps on improving which is slightly reducing the average dwell time at destination.
