The need to know
The need to know for the week ending 5th August 2022
The need to know from Reuters’ global network of journalists
Maersk sees global supply chain woes for longer; lifts 2022 guidance
Maersk (MAERSKb.CO) raised its 2022 profit guidance for a second time on Tuesday after beating quarterly revenue expectations as congested global supply chains that have boosted freight rates persist longer than expected.
Maersk’s cash machine is economic storm warning
Shipping giants are sending out an unlikely warning signal about the global economy. Danish behemoth A.P. Moller-Maersk (MAERSKb.CO) said on Tuesday it would probably land a whopping $37 billion of EBITDA this year due to sky-high freight rates. The trouble is its valuation gives minimal credit to what lies beyond the immediate horizon, implying stormier seas ahead.
Maersk sees weaker container demand as durable goods sales dry up
Shipping group Maersk (MAERSKb.CO) expects global container demand to fall this year as sales of durable goods come to a "standstill", leaving flat-screen TVs and furniture piling up in warehouses, the company said on Wednesday.
America's biggest warehouse is running out of room. It's about to get worse
America's largest warehouse market is full as major U.S. retailers warn of slowing sales of the clothing, electronics, furniture and other goods that have packed the distribution centers east of Los Angeles.
China's military drills near Taiwan disrupt key shipping lanes
China's military exercises in the waters around Taiwan have prompted some ships to navigate around the Taiwan Strait and give the island a wide berth, disrupting key trading routes for cargo and commodities sailing around the world, analysts said.
Shipping prices rise as Rhine water in Germany falls again, vessels part loaded
Water levels on the river Rhine in Germany fell again in hot, dry weather this week and cargo vessels are sailing with reduced loads with transport prices rising, vessel brokers and commodity traders said on Wednesday.
Ukraine wants shipping safe passage deal extended beyond grain
Three grain ships left Ukrainian ports on Friday while the first inbound cargo vessel since Russia's invasion was due in Ukraine later in the day to load, as Kyiv called for the safe passage deal to be extended to other cargoes such as metals.
Global supply chain stress at 18-month low in July, NY Fed's index shows
Stress on global supply chains eased in July to the lowest level since January 2021 as port congestion and other snags eased, the New York Federal Reserve reported on Thursday, in its latest update to a worldwide index of supply problems.
Glencore Singapore bunkering licence suspended over contaminated fuel
The Maritime and Port Authority of Singapore (MPA) said on Wednesday it will suspend Glencore Singapore's bunkering licence for two months after the company was found to have supplied contaminated fuel to ships.
German exports surge to record level in June, outlook still gloomy
The value of German exports jumped by 4.5% in June to hit a record level, though economists cautioned that much of the increase was likely due to soaring prices.
U.S. manufacturing slows modestly; excess inventories a major concern
U.S. manufacturing activity slowed less than expected in July and there were signs that supply constraints are easing, with a measure of prices paid for inputs by factories falling to a two-year low, suggesting inflation has probably peaked.
GLOBAL ECONOMY Factories squeezed by higher prices, weak demand
Factories across the United States, Europe and Asia struggled for momentum in July as flagging global demand and China's strict COVID-19 restrictions slowed production, surveys showed on Monday, likely adding to fears of economies sliding into recession.
U.S., Japan to cooperate on semiconductors as part of new economic dialogue
The United States and Japan launched a new high-level economic dialogue on Friday aimed at pushing back against China and countering the disruption caused by Russia's invasion of Ukraine.
British businesses turning away from China, industry group says
British businesses are cutting ties with China due to concerns about political tensions, a shift that is likely to stoke inflationary pressures, the head of the Confederation of British Industry (CBI) said in an interview published on Saturday.
Column: China steps up copper imports despite renewed slowdown
China imported 373,000 tonnes of refined copper in June, the highest monthly tally this year. Cumulative imports over the first half of the year came in at 1.87 million tonnes, up by 4.4% on the first half of 2021.
Column: China’s U.S. ag imports soar to new highs in 2022, but volumes vary
China is on track to be the leading international buyer of U.S. agricultural products for a third consecutive year, as the total value of exported goods reached record levels in the first half of 2022.
As U.S. eyes new China chip curbs, turmoil looms for global market
Export restrictions being considered by Washington to halt China's advances in semiconductor manufacturing could come at a substantial cost, experts say, potentially disrupting fragile global chip supply chains - and hurting U.S. businesses.
Alibaba revenue growth flatlines for first time as China's lockdowns bite
Alibaba Group Holding Ltd (9988.HK), on Thursday reported flat quarterly revenue growth for the first time in its history, showing how China's COVID lockdowns have hit its business.
Analysis: Amazon has a Prime edge over Walmart: richer customers
Amazon Inc's (AMZN.O) strong quarterly performance on Thursday offered another sign of a split in shopping patterns between more- and less-affluent Americans dealing with the highest inflation in four decades.
Hit by rising costs and supply snarls, Toyota profit tumbles 42%
Toyota Motor Corp's (7203.T) profit slumped a worse-than-expected 42% in its first quarter as the Japanese automaker was squeezed between supply constraints and rising costs.
Albemarle studying ways to recycle lithium in North America
Albemarle Corp (ALB.N) on Thursday said it is studying ways to develop a battery recycling business in North America and believes there would be many similarities with its current lithium operations.
Chip makers have a message for car makers: Your turn to pay
The shortages of computer chips that forced global automakers to scrap production plans for millions of cars over the past two years are easing - at a new and permanent cost to the car companies.
China says U.S. chip act will distort global semiconductor supply chain
China's commerce ministry said on Friday that a major new chips act passed by the U.S. Congress will distort the global semiconductor supply chain and disrupt international trade.
Column: China's exports smooth aluminium supply-chain disruption
China is playing a crucial role in rebalancing the global aluminium supply chain in the wake of Russia's invasion of Ukraine.
Caterpillar gets wrapped in slowing China demand and supply-chain woes
Caterpillar Inc (CAT.N) on Tuesday warned of a bigger drop in demand for its excavators in property crisis-hit China, piling on more pain on the industrial bellwether grappling with supply-chain disruptions.
EV maker Lucid halves 2022 production forecast as supply chain snarls hit
Lucid Group (LCID.O) on Wednesday halved its production forecast for electric vehicles, blaming extraordinary supply chain and logistics challenges, sending its shares down 10% after the bell.
Maersk to acquire Denmark-based logistics firm Martin Bencher Group
Shipping group A.P. Moller-Maersk said on Friday it had agreed to buy Danish logistics company Martin Bencher Group in a deal valued at $61 million.
Analysis: As wheat prices soar, the world's consumers vote with their feet
SINGAPORE/JAKARTA, Aug 3 (Reuters) - Global wheat consumption is headed for its biggest annual decline in decades as record inflation forces consumers and companies to use less and replace the grain with cheaper alternatives, amid growing food insecurity.
Deutsche Post reports double-digit Q2 earnings growth
German logistics company Deutsche Post (DPWGn.DE)reported double-digitgrowth in revenue and earnings on Friday and confirmed its outlook for 2022, as its flourishing freight and express business built on an already-strong start to the year.
Brazil fertilizer deliveries to stabilize or fall as cost woes weigh, Yara executive says
Fertilizer deliveries to Brazilian farmers will stabilize or fall in 2022, an executive at Norway's Yara YAR.OL, a major supplier, told Reuters on Thursday, citing a global rise in prices that is also causing domestic logistical bottlenecks.