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Supply
Chain by the Numbers |
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- Nov. 5, 2015 -
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Kraft Heinz Giving the Cheese to Seven Plants; Ubers for the Trucking Industry Popping Up All Over; Maersk Says it has Enough Ships in Face of Slow Container Growth; US PMI Barely Shows Expansion |
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50.1
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That was the level of the October Purchasing Managers Index from the Institute of Supply Management, above the 50 mark that separates expansion from contraction in the US manufacturing sector for the 34th straight month - but by the thinnest of margins. While the manufacturing winning streak stayed alive in October, the PMI numbers are clearly indicating a slowdown in the economy - the September score was just 50.2, and the number has been dropping every month since June, meaning there is still growth, but at a declining rate. In November and December in 2014, the scores were a much more robust 57.6 and 55.1, respectively, and the number has been headed downward ever since. Of course, the initial estimate for Q3 real US GDP growth just came in at a very weak 1.5% rate, so there are certainly signs the economy is slowing. |
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6 |
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That's the number of giant Triple E container ships with capacity of some 19,000 TEU that shipping leader Maersk Lines has told South Korea's Daewoo Shipping it no longer needs, cancelling the contractual options for the ships as part of a major cost cutting effort. With the container shipping industry battling significant overcapacity, the resulting low rates, and much slower trade growth than in the past, Maersk also announced this week that it would cut 4,000 jobs from its land-based staff of 23,000 and also cancel previous orders for eight slightly smaller container vessels. The Danish company also announced it would cancel 35 scheduled voyages in the fourth quarter, on top
of four regularly scheduled sailings it canceled earlier in the year. It should be noted Maersk did order 11 of the Triple E's this year, contributing to the industry's overcapacity. New ship deliveries will boost capacity by 1.7 million TEU, or
8.2%, in 2015, while demand growth should top out at 2%, the lowest
rate since 2009. |
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