Newsletter Blast: Shanghai emerges from lockdown impacting #GlobalSupplyChains and the latest in culture & product development!
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Happy Tuesday, and bonsoir if you are reading this from Cannes. Speaking of Cannes, Gustav Martner, former chairman of the Swedish Advertising Association, crashed the festival’s opening ceremony as part of a protest against fossil-fuel advertising. Oh, and have you heard Beyonce's new single? Here are the best reactions to Beyoncé’s Joyous New House Anthem, “Break My Soul.”
Shanghai has reopened after two months of Covid-19-related lockdowns and restrictions. As of June 1, manufacturing and shipping activity can resume per normal, although a ramp-up period is expected over the next few weeks. In the meantime, demand is still soft on the transpacific eastbound (TPEB) route, as uncertainty remains surrounding whether a spike in shipments and a strong peak season is expected. International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) labor negotiations remain underway. For cargo ready now, importers might consider taking advantage of currently available space and softer floating market rates.
The Chinese government has released a new policy package containing 33 China stimulus measures in another effort to boost the economy in the wake of COVID-19 lockdowns.
Weekly Economic Report: Some Like it Hot By multiple measures, the U.S. labor market looks about as strong as it has for twenty years. A key question is whether that will spur even more inflation. If so, the May jobs report did not pick that up.
Why life as a millennial is so dull.
In the Gen-Y world, depending on the spectrum, life indexes towards safe, minimal, and, yes, dull. The New Statesmen puts it perfectly here, and nod your head if you've come across this: “It seems that experiences on offer for young people are boring anyway. Festivals no longer care much about hedonism, choosing wellness tents and yoga mornings over late-night raves. Log on to Hinge on any given day of the week and you will be met with countless men who detail their dream Sunday as a walk-up Hampstead Heath with a green juice, followed by a roast chicken dinner. . . . The cult of being boring doesn’t stop there, and even spills into our wardrobes. The clean girl aesthetic has become the style goal for millions of young women: common features include a slicked-back bun, beige or monochrome clothing, minimal gold jewelry, and natural-looking makeup.”
In today’s edition:
Latest Cultural & Marketing News
Latest Happenings at City Global
Navigating Ocean & Air Freights across Asia to North America & Europe
Trending USA-made & Asia-Pacific products that are available for Prototyping Now
Why Sandberg quit Facebook. The changing American consumer. Why do people keep giving Adam Neumann money? Substack’s founders dive into the culture war. The myth of rich peoples’ problems. LGA’s Terminal C gets a massive makeover. Shakira and Piqué split up after 12 years. What happens when you sell fake Basquiats. Plastic recycling will never work. Seven biking cities and best routes to ride. The perfect gin and tonic. And an ode to Hilary Banks.
Game-worn Kobe jersey goes for $2M. Bye to CNN’s breaking news banners. Gas station bathrooms used to be pristine? The best UK pubs with rooms. Even Prada gets into the NFT game. More thoughts on the $1B Byredo deal. Corporate espionage is entering a new era. ACL’s Father’s Day gift guide. Twilight of the NIMBY. ‘I’ve eaten at 200 restaurants this year.’ Alternatives to hard-to-find bourbons. And extensive thoughts on rebuilding Manchester United.
iO5 16 will let you unsend, edit text messages
What took them so long? The Verge
What Trunk Club’s demise
Says about apparel subscriptions. Retail Dive
Can Levi’s be anything more
Than a denim brand? BoF
Tell your boss: Working from home
Is making you more productive. Vox
Soccer became the world’s most popular sport
By design. The Economist
The future of the office
Could resemble a Starbucks. Axios
The FT is rebranding their weekend magazine
From How To Spend It..to HTSI. The FT
Can't get a dinner reservation right now?
There's a reason why it's so hard. WSJ
Why vintage China is in.
Minimalism is trending downward, while maximalism, antiques, and layered home design are trending up. A new piece at Eater further emphasizes this trend, and gets granular by focusing on something Eater related––antique China (or, things you can actually eat off of, if you want to). Key thought here: “DTC brands like Our Place and Year & Day sell sturdy, monochrome plates and bowls, minimalist choices meant to blend seamlessly into any home. But a recent push for more maximalist styles has led to an appreciation for vintage china, one that’s spanning generations and inspiring people to bring out the stuff they have sitting in their closets.”
Why Fashion Brands Are Doubling Down on Sustainability | The Business of Fashion Show
For luxury executives including Kering Chief Executive Officer François Henri-Pinault, 2020 was the year in which the industry forever changed. Amid the arrival of the coronavirus, companies such as his suffered their worst year on record. Consumer behavior shifted even faster from brick-and-mortar to online as supply chains were disrupted. The upheaval has only made more urgent a critical question facing the biggest brands: How does the luxury industry continue to grow while also becoming more sustainable?
David Carson Teaches Graphic Design | MasterClass
From Ray Gun and Transworld Skateboarding magazines to surfboards and potato chip bags, David Carson changed the trajectory of graphic design by never following the rules or sticking to the grid. Now the pioneering designer is sharing his intuitive approach so you can send a message with boundary-breaking work. Explore typography, photography, logo design, and more as you learn how to make an impact and trust your gut.
Why the Metaverse Is Fashion's Next Goldmine | The Business of Fashion Show
Founder and CEO of The Business of Fashion Imran Amed steps into the virtual realm with the pioneering entrepreneurs behind Ledger, The Dematerialised and RFTKT Studios to discover why the metaverse is being seen as the next fashion goldmine.
Opening: Anh Duong’s ‘Without Obsession I Am Lost’ at Spring Place Beverly Hills (City Global's HQ)
Anh Duong trained as a ballet dancer, but she always loved painting and drawing. Beautiful in an offbeat way, she became a couture model in the mid-80s, walking runways and gracing the covers of glossy magazines. When Duong moved to New York in 1988, she started painting professionally, focusing mainly on portraits, especially self-portraits, which she executed by viewing her reflection in a mirror. “When I paint myself, I use a true mirror,” she has said. “So it’s a reflection of the reflection, so it’s actually the real me.” Galerie Gmurzynska presents 25 Duong paintings at Spring Place Beverly Hills.
Read more on AIRMAIL here.
Circa 1988. City Global's CEO, Ira Horowitz, pic with his very first MAC.
#ThrowbackThursday
US Import Demand Drops to Pre-Pandemic Levels A recent article in FreightWaves has reported that recent ocean container booking data shows import demand has decreased significantly. Consumer buying patterns have normalized to pre-Covid levels and U.S. retailers are finding themselves with a surplus of inventory. As a result, freight forwarders are seeing expanding margins on ocean freight.
What to Expect Following Shanghai Lockdown As Shanghai comes out of lockdown, ongoing restrictions mean that it will likely take weeks or months to return to the normal level of output volumes and shipper container volumes, as reported by Loadstar. According to their sources, ocean carrier schedules will likely return to normal later in June.
Factory Output News
Taiwan: The Taiwanese government-held trade talks with the EU about the potential of chip and semiconductor manufacturing in the country. Source
Vietnam: Foreign companies continue to heavily invest in industrial real estate in Vietnam. Source
Vietnam: Apple to shift iPad manufacturing to Vietnam amid Chinese supply chain woes. Source
Indonesia: A joint project between Indonesia and Singapore, the Kendal Industrial Park, is projected to expand to twice its current size. Source
Philippines: A restive volcano in Manila erupted, spewing ash and steam and causing the country to go on high alert. Source
Pakistan: Trade between Pakistan and the U.S. continues to increase month-over-month and year-over-year, according to state bank of Pakistan. Source
Asia → North America (TPEB)
Shanghai has reopened after two months of Covid-19 related lockdowns and restrictions. As of June 1, manufacturing and shipping activity can resume per normal, although a ramp-up period is expected over the next few weeks. In the meantime, demand is still soft on the transpacific eastbound (TPEB) route, as uncertainty remains surrounding whether a spike in shipments and a strong peak season are expected. International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) labor negotiations remain underway. For cargo ready now, importers might consider taking advantage of currently available space and softer floating market rates.
Rates: Levels remain elevated relative to the pre-Covid market with softening in many major pockets, especially into U.S. west coast (USWC) ports.
Space: Mostly open, except in few pockets.
Capacity/Equipment: Open, except in few pockets.
Recommendation: Book at least 2 weeks prior to cargo ready date (CRD). Consider premium options where needed. Be flexible in regard to equipment and routings. Check closely with suppliers to understand any Covid-related impacts or changes to production outputs and forecasts.
Asia → Europe (FEWB)
Demand is picking up, but congestion is still having a widespread impact on capacity deployed on this route. With Shanghai reopening, the third quarter is expected to be strong with a summer peak. However, there are many uncertainties on a macro level such as the Ukraine conflict, high inflation across Europe, and low consumer confidence.
Rates: Rates are expected to increase in June due to tighter space.
Capacity/Equipment: Overall space is starting to fill up again. Congestion in European ports is causing sailings to return to Asia late, resulting in additional delays and blank sailings.
Recommendation: Allow flexibility when planning your shipments due to anticipated congestion and delays.
Indian Subcontinent → North America
Demand remains soft as we approach the second half of June. This has led to carriers passing on rate deductions for many key lanes, with USEC bound shipments seeing the largest decrease.
Rates: Decreased for the first half of June. Expecting rates to hold into the second half of the month.
Space: Available at Freight All Kinds (FAK) rate levels.
Capacity/Equipment: Remaining stable with some reported deficits of equipment at Inland Container Depots (ICDs).
Recommendation: Take advantage of declining rates. In the past carriers have implemented blank sailings to avoid underutilization. This could lead to increased rates on the horizon.
Asia
N. China: Demand is weak after the long holiday and isn’t expected to recover until mid-June. Carriers continue to return to their original capacity levels, however given the weak demand in the market TPEB rates have decreased slightly while FEWB rates remain stable. President Biden’s push to lift Chinese tariffs may also help to stimulate China exports as well as rally the overall market.
S. China: The market is gradually continuing to improve. TPEB demand is stable and rates are similar to last week, while FEWB demand is strong, particularly to the UK.
Taiwan: The market is slow but stable, however factories continue to face shortages of raw materials. Airlines are also keeping an eye on USWC port labor negotiations as these discussions may lead to market instability. The market has already started to see some sea-to-air rate requests.
Korea: Market demand to the US east coast and FEWB tradelane is weak, while demand to the US west coast remains stable.
SE Asia: The market ex-Thailand is quite soft with carriers eager for cargo. TPEB demand ex-Vietnam is continuing to pickup. Rates in the meantime have increased slightly but are expected to continue to rise in the second half of June. In comparison, FEWB demand is stable with rates maintaining at similar levels to the week prior.
Europe
Demand is stable at reduced levels while fast/high-end fashion is still showing higher demand due to the season change.'
Capacity is stable at an all time high, rate levels are starting to reduce especially on the transatlantic (TA) trade lane.
Jet fuel pricing continues to decrease and is now reflected in the fuel surcharge charged by carriers.
Freighter capacity is improving with better rates and lead times, booking to uplift window is approx 5-10 days.
Build pallets below 160CM increase the possibilities of better uplift and rates based on passenger capacity.
Deferred routings via secondary hubs are still providing cheaper rates overall.
For all trade lanes, continue to place bookings early to secure the best uplift options/routings.
