Category Archives: Strategy

Sourcing from Vietnam could shift as costs and restrictions rise

Posted on September 23, 2021 by | 2 comments

In recent years Vietnam has had its day in the sun, as production of certain items has shifted from China. It’s been cheaper to manufacture in Vietnam, and it’s been a boon to Vietnam’s economy.

But Covid brought a lot of problems to Vietnam, especially at ports. Now firms have to consider whether it’s time to move on, and go to another country.

Instability of supply chains is the new norm. While it’s costly and traumatic to change, sometimes the proper strategy requires it. You can see businesses are thinking hard about it. It’s supply chain strategy playhing out in the real world.

By Sam Whelan 23/09/2021

Sourcing from Vietnam could shift as costs and restrictions rise, warn businesses – The Loadstar

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Posted in Logistics, Managerial Econ, Strategy, Supply Chains

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Secondary services suffer as carriers eye ‘container gold rush’ to the US

Posted on September 15, 2021 by | 1 comment

Oean carriers are redeploying ships from lower-paying to higher-paying routes, leaving some with no way to transport their goods. The article explains how ships are being reassigned, leaving too few ships on a route to keep the schedule going. Give it a look!

Currently, they are adding ships to the Asia-US routes which charge over $10,000 per container. They are leaving routes that charge on the order of $2000 per container.

You can see why they are doing it. They can get away with it because ships are only bound by the laws of the country they are flagged in. Most of these laws are weak. Port countries do have some say, but only the major world port countries can do much to change the behavior of the liners. And they would favor more ships for their key routes.

By Mike Wackett 15/09/2021

Secondary services suffer as carriers eye ‘container gold rush’ to the US – The Loadstar

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Posted in Logistics, Managerial Econ, Ports, Shipping, Strategy, Supply Chains, Uncategorized

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CMA CGM startles rivals by vowing to stop spot rate increases for coming five months

Posted on September 10, 2021 by | 2 comments

The third largest liner firm just one-upped other container lines by announcing a freeze in spot rates.

Of course they are at an all-time high. And Hapag-Lloyd, a smaller liner firm, said they had ‘already frozen rates’. But it’s a great piece of publicity.

It is a bit like a car manufacturer saying they will freeze the price of a car at the MSRP (sticker price). No one tries to pay that anyway.

Sam Chambers September 10, 2021

CMA CGM startles rivals by vowing to stop spot rate increases for coming five months – Splash247

Some responses:

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Posted in Logistics, Shipping, Strategy, Supply Chains

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