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Supply Chain Snapshots - News of the Week (April 17, 2023)

Monday, April 17, 2023

This is Flexport's mark (alternative). It's the Flexport mark with white.

1. Morgan Stanley Sees Freight Upcycle Nearing

(Read more at FreightWaves)

Morgan Stanley’s latest Freight Pulse shows improving sentiments among shippers, with nearly 75% of those surveyed saying they expect inventories to normalize in 2023. Feelings around trucking and rail service (in the U.S.) were more varied, with some shippers saying they’d be shifting between the two modes to find the best combination of rates and schedules for their current needs and to avoid ongoing issues in both industries.

2. Carriers Watch As Mexico’s Airfreight Volumes Continue To Grow

(Read more at The LoadStar)

Cargo throughput at Mexican airports is up 5.2% year-over-year, with international traffic increasing by 7.3%. This increase is driven by U.S. firms looking to nearshore production, as well as international firms aiming to diversify suppliers outside of Asia.

3. Why Air Cargo Must Continue To Experiment, Embrace New Tools and Tech

(Read more on Stat Times)

According to the World Bank’s recently released report, “Falling Long-Term Growth Prospects: Trends, Expectations, and Policies,” global GDP growth will slow significantly in the coming years. For the freight forwarding and global shipping industry, the time may be perfect to invest in technology upgrades and improved data practices. Neel Jones Shah, Flexport’s EVP of air strategy & carrier development, had this to say: “My advice for everyone working in supply chain right now is to take advantage of this time to plan for the future.”

4. How the Pandemic’s E-Commerce Boom Drove New Packaging Trends

(Read more on Retail Dive)

Shifts in consumer shopping habits, environmental concerns, brand reputation, and direct-to-consumer models stemming from the early days of the COVID pandemic have all contributed to changes in how goods are shipped to buyers. Specifically, Ships-In-Own-Container (SIOC), in which an item arrives in the original packaging without any additional box or packaging needed, has seen a major uptick in recent years.

5. U.S. Imports Bounce Back in March Despite Dwindling China Cargo

(Read more on FreightWaves)

U.S. imports have rebounded from earlier in 2023, with a decrease in shipments from China and uptick in shipments from countries like Thailand, South Korea, and Japan. One potential sticking point in this rebound is continued high inventories across sectors, which are proving stubborn for many retailers to work through. Additionally, opinions are mixed as to whether or not the global supply chain has returned to “normal,” leaving us to wait for Q2 numbers to have a better grasp on the situation.

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