Tag Archives: ocean shipping

Inventory is a ‘high risk’ for retailers: Morgan Stanley

Posted on October 18, 2022 by | Leave a comment

A study by Morgan Stanley consultants indicates that there is way too much inventory in retail outlets. They believe it’s an overshoot of almost 20%. That means that inventory needs to be liquidated by these firms, and also that they will slow down reordering.

The implication for transportation is less demand for it. That’s consistent with the downturns on prices we see for goods movement in both ocean shipping and domestic trucking.

Too much inventory can be good for retailers like TJMaxx and Ross that can help liquidate inventory of more upscale retailers. They will have good supplies of products to move at a discount.

It is interesting to see how directly supply chain and logistics activity correlates with inventory levels. While it’s not always the case, right now the connection is direct.

Rachel Premack Tuesday, October 11, 2022

Inventory is a ‘high risk’ for retailers: Morgan Stanley – FreightWaves

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Managing the decline – in container shipping

Posted on October 6, 2022 by | 1 comment

A good summary as of the beginning of October 2022. Drewry research is well executed and they have thoughtful analysis.

There is an oversupply of container shipping capacity coming. There are so many newbuilds coming. And the amount of container freight seems to be leveling off, if not declining. And congestion seems to be declining, in at least the places that were bad over the past two years. Currently port congestion is responsible for only about 7% of effective capacity loss, down from as high as 17%.

Drewry’s position is that liner firms have the ability to control the supply of shipping, but they need to be careful to do it right. But the thinking is that the firms themselves cannot completely bridge the gap between supply and demand. Missed sailings can help, and so can phasing out old ships faster. that would also be a benefit for the climate change issues we face.

Drewry – Weekly Feature Articles – Managing the decline

Drewry – Weekly Feature Articles – Managing the decline

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New California law designed to rein in detention and demurrage charges

Posted on October 6, 2022 by | Leave a comment

California again takes the lead in denying demurrage and detention charges by marine terminals and intrmodal equipment providers, such as chassis providers, when return is prevented by actions outside the control of the users. Such conditions might include gates being unavailable for return, a provider diverting the equipment from the original intrchange location, and when the carrier documents an unsuccessful attempt to return the item, or because a vessel’s booking date is changed.

All these changes will be good for the business. They will force carriers and equipment providers to pay attention to the effects of congestion, and work to reduce it.

Congratulations to California for this law. Now let’s see how it works.

John Kingston Wednesday, October 5, 2022

New California law designed to rein in detention and demurrage charges – FreightWaves

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