Hi guys, Welcome to Supply Chain Radar!

Last week we talked about how shippers are craving higher visibility. This week, we bring you a star-studded webinar where you can learn more about the topic from the brightest minds in our industry.

Our favorite FreightWaves host, Timothy Dooner, is hosting! more here.

Onto the neeewwsss!!!

Week's Top Stories 🗞️

The Chips are Down for China 👩🏻‍💻🃏
Will the Global Supply Chain Catch a Break? Why We Aren’t Holding Our Breath 🛳️
Sink or Swim? 🥵

The Chips are Down for China 👩🏻‍💻🃏

The semiconductor shortage has affected just about every industry imaginable, some worse than others, particularly the automotive industry. Every country has been feeling the strain as lead times, some as long as 49 weeks for various chips, but none more so than China.

With continuous lockdowns due to COVID, China relies on other countries for its automotive chips. It has become ground zero for the shortage, which parts brokers are keenly aware of.

Chinese automotive manufacturers are staring at a very risky gamble between trying to wait it out or diving into the “grey market” of broker-supplied chips, which are easy to counterfeit and come with a hefty price tag.

Learn more about China’s chip shortage problem here.

Will the Global Supply Chain Catch a Break? Why We Aren’t Holding Our Breath 🛳️

n terms of boxing, the global supply chain has rolled with enough punches to make any heavy-weight champion proud. And while some challenges are starting to ease up, it isn’t likely to get back to normal anytime soon.

Inflation and delays are easing, which is great news for consumers. According to forecasters like Bloomberg Economics and the Federal Reserve Bank of New York, there are several, albeit slight, improvements in the health of the supply chain.

However, as is often the case in freight, it’s either feast or famine, and softening demand could send the global supply chain whipping back to the other side of the spectrum. Many suppliers have been beefing up their inventories to weather out the storm, which could be leading to an excessive inventory pileup and another hallmark of an impending recession.

Take a look at the future forecast for the supply chain here.

Sink or Swim? 🥵

How hot is it in Europe right now? It’s so hot that Germany’s supply chain is quite literally evaporating. The Rhine, which runs over 760 miles from the Alps to the North Sea, carries roughly 80% of goods shipped through Germany and is mere inches from failure.

The European heat wave has the Rhine at critically low levels, hovering around the 70 cm (about 27.5 inches) mark. If the water level drops 40 cm or below (about 15.7 inches), freight barges won’t be able to carry enough weight to justify the voyage, leaving the German supply chain in hot (read shallow) water.

Read more about the state of the Rhine here.

Secret Links 🤫

The most dangerous job in the shipping industry Check this out!

Whistle blown onsecret ocean pollution! 😱

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