Hotline: 0906 779982Tiếng Việt

The U.S. supply-chain crisis is already easing as the holiday season approaches

Progress in the industry is still slow and too many boats are waiting at the ports, but many problems have at least stopped getting worse.

The U.S. supply-chain crisis is already easing as the holiday season approaches

The supply-chain crunch appears to have already peaked in the U.S. Over the past two years, just about anything that could go wrong with global supply chains has gone wrong, from volatile swings in demand, a wave of extreme weather events and even a container ship getting stuck in the Suez Canal. But evidence keeps piling up to suggest that the U.S. is slowly but surely making progress in easing freight congestion and supply shortages.

Global average ocean freight rates for a 40-foot container have now declined for eight straight weeks, according to data released from maritime advisory and research firm Drewry. Spot pricing for the busy Shanghai-to-Los Angeles trade route has bounced around more but is still down about 19% from its September peak.

Meanwhile, the number of containers lingering for longer than nine days at the Port of Los Angeles has dropped by about a third since the hub announced a plan in October to start fining ocean carriers for excessive dwell times, Executive Director Gene Seroka said this week.

The threat alone seems to have driven meaningful improvement, so the ports of L.A. and Long Beach have delayed the penalties (which start at 100 a day and rise in 100 increments) until at least later this month. An influx of additional sweeper ships used to pick up empty containers is also helping to clear dock space for new cargo, while local officials have agreed to temporarily increase the number of containers that can be vertically stacked in nearby warehouses and container yards.

The worst may be over

Shipping costs are still very high but they are trending down for a change. For all the doomsday warnings about the knock-on effects of the logjams on corporate earnings, companies generally seem to be managing fine - at least the large, public ones. Target Corp. this week reported 2 billion of additional inventory on its balance sheet at the end of the third quarter compared with a year earlier as it stockpiled goods to meet holiday demand.

The retailer said it had secured enough truck and rail capacity to support expected shipments in the final months of the year. In the industrial world, freight congestion and supply disruptions weighed on short-term sales, but the damage to profit margins ended up being fairly limited in the third quarter as companies flexed their pricing power. Most executives sound very optimistic about future demand in 2022 and beyond.

U.S. manufacturing output rose in October to the highest level since March 2019, Federal 56VIETNAM LOGISTICS REVIEW Reserve data showed. The factory production rebound was driven in part by an 11% jump in motor vehicles and parts, suggesting that even the automotive industry, hit hard by the semiconductor shortage, is navigating the supply crunch.

Indeed, October marked the peak of the chip crunch at Toyota Motor Corp., Bob Carter, the company’s executive vice president for North American sales, told CNBC. That echoed commentary from Honeywell International Inc. Chief Executive Officer Darius Adamczyk, who also predicted that availability of industrialoriented semiconductors would soon improve.

To be sure, a peak in supply-chain stress doesn’t mean it’s over. Shipping costs are still very high on a historical basis: The global benchmark rate is up more than 200% from the same period last year, Drewry data show. The number of container ships waiting to enter the ports of Los Angeles and Long Beach has hit new records in recent days. And as of the end of November, there were still around 80 anchored or idling further off shore, according to the Marine Exchange of Southern California.

“There’s been some acceleration of the ports moving containers out and some early signs of dampening on ocean freight rates in the spot market,” Bob Biesterfeld, CEO of freight broker C.H. Robinson Worldwide Inc., said in an interview. “Whether or not that’s a trend is yet to be determined. But the market relative to normal - whatever normal is - is still largely dislocated”. Black Friday is only a week away, and there’s probably stuff on those 80 waiting boats that some people would prefer to have in inventory, Biesterfeld said.

But for the supply-chain crunch to get better, it first needed to stop getting worse. That at least appears to have happened.

VnRoyal organized the first international children’s exchange program

Ngày 27/01/2021 lúc 14:58

In the morning of January 24th, VnRoyal Joint Stock Company organized the 1st International Children's online Meeting between children at the Que Huong Charity Center and American, Indian and South African children living in the U.S. The meeting was an occasion for the children in the two hemispheres of Vietnam - America to know and communicate with each other.

For the people’s safety and social utility

Ngày 18/03/2021 lúc 15:27

Last time, difficulties of the whole project have been being considered by the government authorities, and quickly sought solutions to clear all obstacles, especially under the circumstance that these problems can significantly affect the social benefits obtained from the open of Hai Van Tunnel 2. Investors will continue overcoming the problems to ensure the non-stop operation of 2 tunnel tubes for the next time to serve the traffic needs of citizens.

VLA: solidarity, recovery and development after the COVID-19 epidemic

Ngày 20/01/2022 lúc 14:23

2021- the second consecutive year that the Vietnamese economy in general and the logistics service industry in particular have been heavily affected by the COVID-19 pandemic. Last year, as a representative agency for the logistics business community, the Vietnam Logistics Business Association (VLA) has constantly made efforts, accompanied and stood side by side with enterprises, promptly launched recommendations and solutions to help the logistics business community overcome difficulties caused by the epidemic, together aiming for the target of “Solidarity, recovery and development after the COVID-19 pandemic”.

Gemadept Group ordered 6 more Panamax STS cranes from Doosan Vina to equip the seaport system in the North

Ngày 25/01/2022 lúc 17:37

Doosan Vina will continue to supply 6 Panamax STS cranes to the seaports of Gemadept customer with the first three units signed on September 8th, 2021, and the remaining three were signed on January 20th, 2022.

Vietnam economy: Confident to step forward

Ngày 21/01/2022 lúc 08:00

After over 30 years of renovation, Vietnam’s economy and society has never been affected as heavily as in 2021. The 4th outbreak of the COVID-19 pandemic has caused damages to both the economy and the people. However, with various flexible solutions and adaptability, Vietnam’s economy has had a gradual recovery with many bright spots- creating basis for the new year of 2022 with brighter expectations.

The resilience in spring

Ngày 21/01/2022 lúc 08:00

2021 posed a great challenge to all businesses with 2 waves of the COVID-19 pandemic. However, Vietnam's macro indicators have grown relatively steadily, affirming Vietnam's strategic vision and correct direction.