The need to know

The need to know for the week ending 17th September 2021

The need to know from Reuters’ global network of journalists

Airbus CEO says supply chain is in 'difficult spot'

Airbus (AIR.PA) is seeing mounting pressure on the aerospace supply chain and managing the problem is key to the industry's recovery, the head of the European plane maker said on Tuesday.

Britain's supply chain is strained 'everywhere' - Morrisons CEO
Britain’s supply chain is creaking, causing continuing product availability issues, the boss of the country’s fourth largest supermarket group Morrisons said on Thursday.

Strained supply chains keep U.S. producer prices hot
U.S. producer prices increased solidly in August, leading to the biggest annual gain in nearly 11 years, suggesting that high inflation is likely to persist for a while as the unrelenting COVID-19 pandemic continues to pressure supply chains.

From zippers to glass, shortages of basic goods hobble U.S. economy
For Lauren Rash, it’s the little things that have snarled production at her tent factory here, like the many shades of black Velcro.

Primark stores fully stocked despite supply chain disruption -finance chief
Fashion retailer Primark is currently not short of any product in its UK stores, despite supply chain disruption across the country due to a shortage of HGV drivers, the finance chief of its owner said.

Lowe's says inventory in better position in months amid supply-chain snafu
Lowe's Cos Inc (LOW.N) said on Thursday it was bringing holiday products into its stores and warehouses earlier than originally planned, as supply chain bottlenecks threaten to leave U.S. stores with empty shelves during the holiday season.

Shipping woes, discounts bite into Kroger's margins, shares fall
U.S. supermarket chain Kroger Co (KR.N) reported a fall in a main measure of profitability on Friday, blaming wastage, discounts and this year's squeeze on global supply chains.

UK's Made.com warns supply problems could stretch into 2022
UK online furniture retailer Made.com (MADE.L) said on Tuesday its first-half profit margins took a hit from higher shipping costs driven by global supply chain issues that could last until next year and delay orders.

U.S., South Korea trade chiefs discuss strengthening supply chain
U.S. Trade Representative Katherine Tai and South Korean Trade Minister Yeo Han-koo, in a meeting on Monday, emphasized the importance of working together to strengthen supply chains, including for semiconductors, the office of the USTR said in a statement.

Mexico, U.S. agree in talks to form working group on supply chain issues- Mexican government
Mexican and U.S. officials will create a bilateral working group on supply chains, Mexico’s government said in a statement on Thursday following high-level economic talks with Washington.

Fevertree profit jumps but supply snags hurt margins
British tonic maker Fevertree Drinks reported higher half-year earnings on Wednesday, but warned rising shipping costs due to global supply chain disruptions were hurting profit margins.

Ocado Retail has 'small pockets' of poor product availability -chairman
The chairman of online supermarket group Ocado Retail said on Tuesday that although there were "small pockets" of poor product availability currently it was no worse than the average of the last 18 months despite supply chain disruption across the UK.

Siemens readies logistics unit for sale as continues to sharpen focus
Siemens is readying its logistics unit for sale in a potential roughly 500 million euro ($591 million) deal, as the German industrial conglomerate sheds non-core businesses to focus on its industrial operations, people close to the matter said.

Amazon hikes average U.S. starting pay to $18, hires for 125,000 jobs
Amazon.com Inc (AMZN.O) has increased its average starting wage in the United States to more than $18 an hour and plans to hire another 125,000 warehouse and transportation workers, an executive told Reuters.

Britain delays post-Brexit import trade controls again
Britain has delayed the implementation of some post-Brexit import controls for a second time, saying it would phase in checks through next year rather than impose them now when industry supply chains are under strain.

Redwood, led by Tesla co-founder, to build battery materials in U.S.
Redwood Materials led by Tesla co-founder J.B. Straubel said on Tuesday it will build its battery materials manufacturing facility in the United States, as the country seeks to cut reliance on imports for the key component for electric vehicles.

Shipping giant CMA CGM to halt spot freight rate rises until February
French container shipping group CMA CGM said on Thursday it was stopping all increases in its spot freight rates until February in a gesture to customers after a surge in shipping costs during the coronavirus pandemic.

Brazil's coffee exports fall 27% as shipping hurdles increase
Exports of green coffee from Brazil, the world’s largest producer, fell 27% in August from a year earlier to 2.33 million 60-kg bags as difficulties to find containers and space at vessels increased, exporters association Cecafe said on Monday.

From elsewhere around the web:

One Stuck Box of Fertilizer Shows the Global Supply Chain Crisis. [Bloomberg]

M&S may close some French stores due to supply chain delays caused by Brexit. [The Guardian]

Why even giant ships can't solve the shipping crisis. [BBC]

Food fraud and counterfeit cotton: the detectives untangling the global supply chain. [The Guardian]

Maersk buys omnichannel tech startup, furthering end-to-end ambitions. [Supply Chain Dive]

Vaccine mandate adds another wrinkle to warehouse, distribution hiring crunch. [Supply Chain Dive]

Shipping stocks hit fresh highs amid COVID-era supply chain chaos. [Freight Waves]

Ningbo and Shanghai closures could disrupt $14 billion in global trade. [Port Technology]

New Brexit customs control delays 'expected', but still 'a pain in the neck'. [The Loadstar]

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