The Silq Scoop: Asian Countries and Supply Chains Continue to Dominate As U.S. Seeks Stronger Trade Partnership with South America
Welcome back, folks. It is the fifth edition of the Silq Scoop, and you know what they say about consistency. It is the gift that keeps on giving. We publish, you read; we are both awesome.
In this month’s edition, it seems Asian countries and industries came into play because we have a lot of news coming from that end. Starting with the world’s second-largest port, expanding its berth to reduce delays. When you are big, you are big. E-commerce platforms selling to customers across North America and Europe have got the air freight industry in quite the frenzy, even as truck transportation jobs in the U.S. see a slight decline.
Enough chit-chat. Let's dive in!
Singapore’s Tuas Mega-Port Opens New Berths As Congestion Eases
Singapore's Tuas mega-port is expanding! That's right, the second-largest port in the world just opened a new berth and will add two more this fall.?
This is happening even as congestion and ship delays ease up. Talk about a power move! It looks like they're not letting the recent hiccups slow them down. This is quite clearly the ripple effect of the disruption caused by the Red Sea attacks, resulting in major headaches for ocean carriers and turning Tuas into a bottleneck.?
But PSA International, the terminal operator, wasn't about to let that ruin their groove. The MTO has reactivated berths and container yards downtown to handle the overflow. Now, ship wait times are way down — a mere 50-60 hours for Hapag-Lloyd, compared to over a week not too long ago. All this good news has led to a 7.7% year-over-year jump in total throughput in the first five months of 2024.
But wait, there's more! PSA and the Maritime and Port Authority of Singapore are pushing carriers to use the port's fancy just-in-time vessel scheduling system for more efficiency. It looks like Tuas is determined to stay ahead of the game, no matter what curveballs are thrown their way.
Air Freight Industry Heading For an Over-Priced Peak Season
The air cargo market is on a wild ride, and shippers are left clutching their purses because of the price hike.
The peak season is in full swing and shows no signs of slowing down. Demand is soaring higher than a kite while supply struggles to keep up. What's fueling this frenzy? Shopaholics in the US and Europe just can't get enough of their e-commerce fix, and with the Red Sea under constant attack, shippers are increasingly turning to air cargo to deliver these goods. Naturally, the surge in demand is causing prices to skyrocket, especially on routes from Southeast Asia. And it will only worsen come September when airlines are expected to slap on peak season surcharges.
Even though air cargo volumes are climbing, there aren't enough planes to handle all those packages. It's a dog-eat-dog world out there, with shippers battling it out for space, especially on trans-Pacific routes. If you plan to ship anything from Asia Pacific, prepare to shell out some serious cash.
Good News! Slight Decline in Transportation Jobs for June
Truck transportation jobs dropped in June, hitting the lowest point since last October.?
Despite a small bump in summer rates, the industry isn't exactly booming, with a full recovery still some distance away. But hey, it's not all doom and gloom! There are hints of stability, with unadjusted job numbers actually creeping up. Meanwhile, other transportation sectors are a mixed bag. Rail jobs are chugging along, reaching their highest level in years, while warehousing and storage jobs have finally hit rock bottom. Long-haul truckers saw a slight decrease in jobs, but hey, at least they're making bank – their hourly wage just topped $30 for the first time ever!
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So, while the transportation industry isn't exactly firing on all cylinders, it seems like things might finally be leveling out.
Fast Fashion Giant Set to Enter The World of Logistics Technology Amid CyberSecurity Fears
Chinese fast-fashion giant Shein is boldly moving into the logistics tech world, but it's not all sunshine and rainbows.?
This expansion has raised eyebrows among U.S. cybersecurity pros and national security personnel, who are worried about potential snooping due to the company's close ties to China. With a sprawling supply chain network, Shein has folks sweating over data security. Critics claim their fancy new software could give the Chinese government a backdoor into sensitive supply chain info, potentially wreaking havoc on U.S. operations.?
Trying to play nice, Shein has moved its headquarters to Singapore and is storing U.S. customer data on American soil. However, with its supply chains and warehouses still firmly rooted in China, some argue that Beijing could still get its hands on that juicy data.
Despite Shein's reassurances of top-notch security measures, experts are still wary. They say letting Shein's tech into U.S. supply chains could be a recipe for disaster, potentially harming competition, breaking the rules, and opening up a whole can of cybersecurity worms.
U.S. Aiming to Bolster Textile and Apparel Trade Partnerships With South America
Uncle Sam is shaking things up in the textile and apparel world!?
Ditching the usual Asian haunts, the U.S. is now cozying up to its buddies in Central and South America. They've got this grand plan, the Americas Act, with a $45 billion investment to make the industry more sustainable. It's all about building stronger ties with the neighbors to the south, creating jobs, and boosting trade – and quite possibly dent China's habit of dominating the textile scene.?
The act also throws in some cash for recycling programs and stricter trade rules – it looks like the U.S. means business!
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