Latest Freight News...& Holiday Advertising is here! đ
You might still be wiping off traces of face paint while fighting a Halloween hangover, but itâs officially Novemberâwhich, for some, marks the true start of the holiday season. We wonât be the judges of when itâs appropriate to start playing âAll I Want for Christmas Is You,â but we will tell you what marketers have going on over the next few months.
Campaigns: Major retailers have already rolled out their holiday ads. A Neiman Marcus ad stars dancers Alison Ingelstrom and Andre Malcolm, Kohlâs commercial also features dancing, and Etsyâs holiday spots each tell a story about heartfelt gifts.
You got me in chains: Supply-chain issues are affecting all sorts of products, even wrapping paper and Christmas trees. And some advertisers, like Zulily, are rolling out holiday campaigns earlier than usual this year as a result, per Business Insider, to encourage shoppers to buy gifts sooner rather than later.
Live and learn: Live shopping events are all the rage this year. Starting today, Facebook (Meta?) is hosting âdaily live shopping experiencesâ across FB and IG with brands like Ulta and Walmart. YouTube, too, is putting on a weeklong live shopping event with creators and brands starting November 15.
E-commerce sales are predicted to grow 11%â15% compared to 2020, per Deloitteâs holiday retail forecast.âMS
Cultural Pulse: James Bland. âJust be unlikeable, itâs fun.â Picassos sell for $100M+ in Vegas. âGwyneth Paltrow is a gifted marketer.â Why actors love Wes Anderson. The moral panic engulfing Instagram. Vanderbilt Tennis Club. What is home for you? âBig money, a veil of secrecy, and bad actors.â Klay Thompson and his boat. How many kids should you have? Trader Joe wrote a memoir. Coffee at Brooks Brothers. Julia Childs' $3.5M DC house is for sale. And WWII warships emerge from the ocean in Japan.
AimĂ© Leon Doreâs collab with Woolrich
Drops this Friday. ALD
Monocle visits Montauk
âHome to inventive architecture with weather in mind.â Monocle
Hersheyâs and Kimberly-Clark are just two companies cutting back on ad spend for products they can stock due to the supply-chain crisis. McDonaldâs is promoting the return of its McRib sandwich (burger?) withâwhat else?âsome NFTs. Candy cornâs marketing strategy explained.
Asia â North America (TPEB)
Demand outlook remains strong, although past peak for 2021 as any just-in-time cargo for the holidays will now likely need to move via quicker modes of transport. Whether TPEB rates will continue to stay flat, further reduce, or increase again remains unclear. Carriers continue to report record earnings and expect elevated demand so long as inventories remain insufficient for retailers. Congestion is expected to remain severe at US ports (~80 container ships currently dwelling at LA/LB).
Rates Carriers expected to extend most standard rates for the first half of November. Rate levels remain elevated and premium demand outlook is strong.
Space Critical
Capacity/Equipment Critical/Severe Undercapacity
Recommendation Continue to book well in advance (at least 4 weeks) from CRD to target ETD for best chance of hitting timelines.
Asia â Europe (FEWB)
Space and equipment crunches continue as market demand consistently exceeds supply, and rates have been very high for a long period. The overall space situation is worsened by blank sailings and poor equipment availability. Carriers are overcommitted and are limiting booking acceptance or rolling shipments. With continuous vessel delays and shifts, schedule reliability is very low. Power shortages are affecting factory production up to a certain extent and causing more changes in shipping plans.
Rates Rates remain at a record high level. However, they have been stable throughout October as well as going into November. There are some slight downward rate revisions by a few carriers.
Space Extremely critical space situation
Capacity/Equipment Severe equipment shortage across all Asia origins.
Recommendation Book at least 4 to 5 weeks prior to CRD. Consider premium options, which may be limited. Be flexible in regard to equipment.
Asia
Northern China: The market has quickly rebounded from the holiday and is trending towards a traditional peak season. With continued cancellations from major carriers, rate levels are further increasing. Major factors of peak season capacity constraints are:
Limited terminal capacity restricting most carriers from returning to full schedules
Key global accounts continuing to ship large volumes out of China
Shippers rushing to catch up to the US holiday season
For FEWB, the heavy congestion at FRA and AMS terminals is recovering very slowly and will require more time to alleviate the backlog.
Overall, demand will greatly outweigh supply over the next few weeks and rates will maintain at high levels.
Southern China: Demand is outpacing supply and capacity is tight ex-HKG due to passenger flights still being canceled. Some carriers have also announced flight cancellations. Rates on both TPEB and FEWB lanes continue to increase.
Taiwan: The market continues to be tight and rates high as it trends towards a traditional peak season. Capacity is almost fully booked through the end of the month with demand particularly high to the US east coast. For volumetric cargo, the earliest departures are around the first week of November.
SE Asia: The BKK market situation continues to be very tight with no significant changes from the prior week. Demand and rates ex-Northern Vietnam are stable and some factories are working overtime to produce cargo. Demand ex-Southern Vietnam is increasing, largely driven by key accounts and charter requests ex-SGN. Rates continue to climb and capacity is very tight. Space is fully booked through the weekend.
CA Ports Introduce Fees to Clear Space In an effort to clear cargo, the Ports of LA and Long Beach will charge ocean carriers a $100 fee for each container that overstays its allotted time. Supply Chain Dive reports the fee will apply for each container that stays more than 9 days if moving by truck or 3 days if moving by rail, and will increase by $100 for each additional day.
Read More: Port Workers Portray the Reality of Bottlenecks
Empty Containers Increase Congestion in LA According to FreightWaves, up to 2,000 containers from the Southeast and the Gulf were headed to the Port of LA to be loaded onto vessels. The containersârequested by carriersâwill create additional congestion for the port terminals to receive local trucks attempting to unload empty containers.
Read More: Transpacific Shifts: Import Demand Is Changing the Worldâs Busiest Trade Lane
Gov. Newsome Looks to Alleviate Congestion California governor Gavin Newsome signed an executive order that will allow properties zoned to handle containers to stack up to 4 high, doubling what was previously allowed, as well as requiring the state to find other short-term methods to lighten congestion according to The Loadstar.
Read More: FWD21 Kicks Off with a Keynote on Empowering the Global Trade Ecosystem
Factory Output News
Taiwan Taiwan Semiconductor Manufacturing Co. agreed to provide logistics information to the US government by Nov 8th to help solve semiconductor supply problems. Source
Singapore SME businesses in the agriculture industry is growing to reduce reliance on imported food. Source
India Up to 76% cotton productivity loss in the bathinda and Mansa region due to Pink Bollworm infestation, Indiaâs Key cotton growing region. Source
Pakistan Port Congestion in Pakistan may affect the energy supply for the nation. Source
Vietnam Shortage of manpower continues to post a threat in logistics in Vietnam. Source
Myanmar United States weighing on economic and political steps to handle the crisis in Myanmar. Source
