WEEKLY MARKET UPDATE 10/03/2024
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This Newsletter's Summary
Figure of the week
12%?decrease in airfares from the U.S. to Europe has been noted compared to last year
Quote of the week
"Logistics is about the management of the flow of goods and services, and it is a critical component of business success".
"Martin Christopher"
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Will the Port Strike Push the US into a Recession?
A prolonged port strike could push the US into recession, according to Sea-Intelligence's Alan Murphy.?He estimates the strike could cost the US economy $3 billion to $5 billion per day due to shipping delays?and rising freight costs.
If the strike lasts longer than two weeks, global trade will face significant challenges, with vessels returning to their origin, driving up costs. After three weeks, shipping costs will likely escalate further.
The Biden administration could intervene, but if the strike continues beyond a month, it may trigger a recession, with?supply chain disruptions?potentially lasting until 2025.
Airfreight Demand Soars Amid Supply Chain Disruptions
The port strike is causing major supply chain disruptions, with freight forwarders?like Scan Global Logistics and Flexport urging businesses to consider airfreight alternatives?for critical cargo. Airfreight prices?are expected to surge as companies reroute shipments ahead of the holiday season.
Capacity shortages?and delays are likely, with each strike day adding five to ten days of?cargo buildup. Businesses are advised to assess their inventory and consider airfreight to avoid severe backlogs.
As negotiations continue, industries like retail and automotive are scrambling to secure shipments, with airfreight becoming the go-to solution amid rising costs.
Weekly logistics trivia
领英推荐
W. Edwards Deming?was a key figure in quality management, notably reshaping manufacturing practices?in post-World War II Japan. His focus on continuous improvement and employee involvement established enduring principles for organizational success. some of his Achievements are :
W. Edwards Deming's focus on?quality management?has significantly shaped modern business practices and success.
Canada's Railways: Paving the Way for a Greener Future
Canada's railway sector?is making strides in its green transition by adopting lower-carbon fuels, achieving a nearly 27% reduction?in emissions intensity for?freight?and 28.1%?for passenger trains?.
With initiatives like hydrogen and battery-electric locomotives?underway, the industry recognizes the need for supportive infrastructure?to facilitate these advancements.
To enhance competitiveness against trucking, rail operators?aim to shift 10%?of trucked freight to rail, which could save 4 million tonnes?of carbon emissions annually, despite ongoing public concerns about the environmental impact?of new projects.
Customs & Regulations
The RoDTEP scheme, refunds unrefunded taxes and duties incurred by exporters, with revised rates effective October 10, 2024.
The scheme is extended until September 30, 2025, for Domestic Tariff Area (DTA)?units and December 31, 2024, for Advance Authorization?(AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs), enhancing exporters' competitiveness.
This initiative plays a crucial role in supporting export growth?and fostering a more favorable environment for businesses. Ultimately, it aims to strengthen India's position in the global market?by reducing the cost burden?on exporters.
???Until Next Week
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Sources