The need to know
The need to know for the week ending 12th February 2021
The need to know from Reuters’ global network of journalists
Asian chipmakers rush to boost production to meet global shortage
Asian chipmakers are rushing to expand their production capacity to meet a global shortage that has been acutely felt by carmakers, but the firms warn that the supply gap may take many months to plug as they struggle to keep up with strong demand.
Ford, Stellantis production cuts raise concerns chip shortage impact could worsen
Production cuts by automakers Ford Motor Co and Stellantis NV due to the global semiconductor chip shortage and warnings from suppliers Robert Bosch and German chip maker Infineon on Thursday have raised concerns the problem will only get worse this year for the industry.
RCEP unlikely to benefit developing members in short term - analysts
The Regional Cooperation Economic Partnership (RCEP) is unlikely to bring immediate significant benefits for its developing member countries in terms of flow of goods and services or major infrastructure investments, analysts and economists said.
Nearly half of UK goods exporters see Brexit trade trouble, BCC says
Just under half of British companies that export goods have run into difficulties caused by the Brexit shift in trade terms with the European Union since the start of the year, a British Chambers of Commerce survey showed on Thursday.
Peloton core earnings forecast falls short on logistics issues, shares drop
Peloton Interactive Inc forecast lower-than-expected quarterly core earnings on Thursday as it grapples with logistics issues following a surge in demand for its exercise bikes and treadmills during the pandemic, sending its shares down 4%.
Infineon strives to meet auto industry demand as supply chains creak
German chip maker Infineon said on Thursday it was facing challenges to meet auto industry demand for microcontrollers due to capacity constraints at the contract manufacturers it relies on.
Road freight prices from France to Britain jump 50% in January - data
Freight prices for moving goods by road from France to Britain rose by 50% in January compared with the same month a year ago after lorry drivers demanded higher payments to operate in the UK after Brexit, Transporeon data indicated.
Bank of England keeping close eye on shipping costs - Bailey
The Bank of England is paying close attention to rising shipping costs as it tries to judge how much inflation is likely to pick up in the coming months, Governor Andrew Bailey said on Friday.
Maersk boosted by trade recovery, but misses forecasts
A surge in demand for goods like furniture and exercise equipment from locked-down consumers has sparked a jump in shipping rates, boosting profits for Danish freight giant Maersk, the company said on Wednesday.
Breakingviews - Capital Calls: Maersk’s fair weather warning
Moller-Maersk’s moment in the sun may be over. The $39 billion Danish shipping giant, whose shares are up nearly two-thirds since March, said last year’s spike in freight rates would extend into the first quarter of 2021, but not much beyond that.
Russian logistics firm CDEK plans bond issue of up to $136 mln
Russia’s largest logistics firm CDEK plans to borrow up to almost $136 million in bonds and is considering an initial public offering in the coming years, spurred on by a boom in parcel volumes during the COVID-19 pandemic, it told Reuters.
S. Korea’s CJ picks FountainVest as buyer for China logistics firm in $1.1bln deal - source
Private equity firm FountainVest Partners is to buy Chinese logistics firm CJ Rokin from South Korea’s CJ Logistics Corp in a deal that gives Rokin an enterprise value of 6.9 billion yuan ($1.07 billion), a source said on Wednesday.
E-commerce boom limits pandemic pain for Smurfit Kappa
Smurfit Kappa said on Wednesday packaging used in e-commerce sales grew 25% in its main market Europe last year during the coronavirus crisis, helping the region’s largest paper packaging producer beat its 2020 earnings guidance.
U.S. trade deficit jumps to 12-year high in 2020
The United States’ trade deficit surged to its highest level in 12 years in 2020 as the COVID-19 pandemic disrupted the flow of goods and services.
From elsewhere around the web
US ports set to break monthly records as import traffic accelerates[Port Technology]
Rates misery for ocean shippers set to continue after Chinese New Year[The Loadstar]
Inflection point: Contract rates overtake spot rates[Supply Chain Dive]
What is the State of On-Demand Trucking?[SDC Exec]
COVID broke Peloton’s supply chain – can $100M fix it?[Freight Waves]
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