Hey there! Welcome to this week’s supply chain radar!

This week we talk about shipping bottlenecks in Germany, falling shipping rates, recession, and DHL getting a new UK head. But before all of that, here’s a cute trucker kitty that would like to say hello. 😺

Now, On to the neeeeeewwwsss!!!!!

Week's Top Stories 🗞️

It’s not America’s Fault... This Time.
Falling Shipping Rates Cast Grim Shadow on the Global Economy
But Wait... There’s More
DHL Gets a New CEO for UK Division

It’s not America’s Fault... This Time

The U.S. West Coast has been the thorn in the side for many a supply chain planner over the course of the past two years. Historic backlogs have led to record numbers of ships just waiting to berth, enough to actually add to the smog index in Los Angeles, a feat we didn’t think possible.

It seems, for the time being at least, that the West Coast has gotten its act together and has finally cleared the backlog. However, now the congestion is starting to pile up on the other side of the globe.

At present, approximately 2% of all global shipping capacity has hit a standstill in Germany as ships are now queuing up outside the port.

Falling Shipping Rates Cast Grim Shadow on the Global Economy

*Global Economy be like

It doesn’t take a crystal ball to see the shape the future is currently taking. Freight rates are continuing to fall, which by all accounts is a good thing as it means that supply chain disruptions are finally beginning to ebb. However, freight rates are also falling due to a slowdown in global trade volumes in response to shrinking consumer demand, according to data from the S&P Global Market Intelligence.

The Good: Supply chain congestion is expected to ease, if not disappear entirely, in the coming quarters.

The Bad: Softer demand could make it harder for retailers and shippers to move excess inventory and recoup the, until recently, exorbitant shipping rates.

The Ugly: A fall in demand globally is a strong indicator of a global recession.

Learn more about it here

But Wait... There’s More

A recession, in and of itself, is bad news, but that’s not the only problem the world is facing, quite the opposite in fact, according to the World Trade Organization.

Here’s a quick rundown of the heavy hitters according to the WTO:

Russia’s war with Ukraine is having a profound impact on the global energy and food crisis.
China’s “Zero-Covid” Policy continues to shut down and disrupt some of the world’s largest distributing and manufacturing hubs.
Extreme weather this summer has created a number of difficulties, including droughts, power outages, and issues with supply chain conveyance.

We can expect that the next year or so at least is going to be a bumpy ride.

DHL Gets a New CEO for UK Division

The DHL CEO, Saul Resnick, from down under, has assumed the role of the UK division of DHL. Formerly the CEO of DHL in the ANZ region, Saul has expressed that there are some decided differences in the logistics challenges between the two regions.

“Culturally, the two businesses are aligned, but there are a few significant differences between the markets,” says Mr. Resnick. He then points out the difference in population density as Australia has approximately 26 million people spread out across the continent and concentrated on two coastal areas, “while, in the UK, 67 million people live in a much smaller area, which presents very different supply chain challenges and opportunities”.

Resnick is pretty well versed in his role and has a positive take on these challenges for the road ahead.

Read what else he has to say here

Secret Links 🤫

Hitchhiking a Cargo Ship! Now that’s certainly one way to travel...

Daww, look at the kitty! Look at it!

You want to have military exercises over shipping routes?! Did your mother not love you?

What an awesome concept! But remember, just a concept.