This is your weekly supply chain bulletin from B2BE for the week starting 10 July 2023.
Each week, we bring you a rundown of the latest trends in the news from across the supply chain industry. We cover the issues most important to you, bringing you useful links to the full articles. This ranges from news on various supply chain disruptions to strategies to lessen the damage. We also include other relevant supply chain related updates. If you missed it, you can read last week’s supply chain bulletin here. Read on to see what’s making the news this week.
A sign of the end of the supply chain crisis
The global supply chain crisis has been a major source of inflation in recent years. However, there are signs that the crisis is finally coming to an end. Ports are less backed up, transportation costs are coming down, and warehouse capacity is improving. These improvements are expected to lead to lower prices for consumers and businesses.
The article author, Garth Friesen, argues the end of the supply chain crisis is a “relief from inflationary pressures.” He cites data from the Federal Reserve Bank of New York that shows that the cost of shipping goods from China to the United States has fallen by 20% since January 2023. This decline is expected to have a ripple effect throughout the economy, leading to lower prices for a wide range of goods and services.
Three steps to improve the EV supply chain in Australia
The Australian government has recently taken three steps to boost the country’s electric vehicle (EV) supply chain. These steps include:
- Introducing a new fuel efficiency standard. This standard will place a cap on the average amount of emissions that a manufacturer’s fleet can produce, which will incentivise them to import lower-emitting internal combustion engine cars or EVs into Australia. The government has committed to introducing the new standard by the end of 2023.
- Investing in charging infrastructure. The government has announced a A$200 million investment in charging infrastructure. This will help to make EVs more accessible to Australian drivers. The investment will fund the installation of new charging stations across the country, as well as the upgrade of existing stations.
- Providing incentives for EV buyers. The government is also providing a range of incentives for EV buyers. For example, stamp duty exemptions and rebates on registration fees. These incentives are designed to make EVs more affordable for Australian consumers.
Significant disruptions to Canadian supply chain caused by port strikes
A strike at Canada’s busiest port on the Pacific cost began on July 1, and has already caused significant disruptions to the supply chain, and is expected to have a major impact on the Canadian economy. The ports in question are Vancouver and Prince Rupert, which are responsible for handling the vast majority of Canada’s imports and exports. The strike has led to a backlog of ships at the ports, and some businesses have already been forced to delay or cancel shipments.
The Canadian government has said that it is working to resolve the strike, but it is unclear when the ports will be able to reopen. In the meantime, the strike is expected to have a significant impact on the Canadian economy.
ESG laws make CEOs feel ‘uneasy’
Finally, a new report from Proxima, the procurement and supply chain consultancy, has found that 70% of CEOs are concerned about the potential for ESG (environmental, social, and governance) transgressions in their supply chains. The report, which surveyed 2,000 CEOs in the US and UK, found that the retail sector is the most concerned, with 79% of CEOs feeling uneasy about the prospect of ESG issues in their supply chains.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
For more information, visit www.b2be.com.