Shipping giant expects supply chain improvement in 2022, brands stay ahead

Shipping giant AP Moller-Maersk told the FinancialTimes that he expects global supply chain difficulties to slowly return to normal in the latter part of 2022.

“Normalization (should) happen in the second half,” the logistics giant told the newspaper as part of a larger story about record financial results and growth from the acquisitions the company has made. The company’s shareholders are in line for a sevenfold increase in their dividend payouts due to a 55% increase in revenue to $62 billion last year. EBITDA tripled to $24 billion.

As previously reported, much of the sustained global supply has been attributed to slow turnarounds at US ports, although those in the UK are even slower. Starting this month, in China, Container Exchange Availability Index values ​​doubled in January 2022 compared to 2019 and 2020-21, showing more containers being repositioned to China and fewer exits (per compared to 2019-2021 data for the month of January).

Maersk managing director Soren Skou tempered his remarks on the supply chain by adding “We continue to have the combination of very high demand and less supply”, pointing to a current three to four month lead time. weeks to even enter a US port on the west coast. .

Due to a rush that tends to be normal around Chinese New Year, average container prices have remained volatile, resurrect having cooled down a bit later in 2021. xChange Container says the Lunar New Year is expected to have a bigger impact than recent years due to prolonged factory shutdowns in China due to the zero-COVID policy.

A container worthy of a 40ft high cube freighter that cost $5,374 in December 2021 at the port of Shanghai, now costs $5,431 in January 2022. A similar trend is observed for Ningbo ($5,478 in December and 5 $633 in January) and Qingdao ($5,255 in September and $5,349). in January). Consistent with this trend, rental costs from China to North America increased by 17% from December to January.

A full February report on supply chain movements and container metrics is available here.

All of the above will hardly reassure some brands that remain at the mercy of changing forecasts. This week, UK bike label Revel Bikes was just one to deliver a candid message to customers about delays beyond their control.

Adam Miller, Owner and Founder of the label said, “Like the rest of the world, we’ve faced some incredible hurdles over the past two years. It has been difficult to get supplies, products and materials through our doors and yours. The whole system is stressed and we struggled to get you the Revel bikes you want. It is certainly not for lack of effort. We spent countless hours trying every possible (and NOT possible) way to get materials and parts delivered so we could build bikes. We’ve assembled an all-star team that works tirelessly to source parts from around the world to get you on the trail as soon as possible. Although we have the most advanced software and people, we can’t always find the right parts at the right time to get you a complete bike nearly as quickly as we would like.

“We strive to provide the best customer service possible in the business. We have answered hundreds of calls asking where your bike is and what our availability is. We always try to give you the best answer. But I’m sorry to say that we have been wrong many times.Lately we have received much more bad news from our suppliers, and even more bad news from shipping companies.The delivery times of the parts we need are getting longer and longer. long, not shorter.