February 2023
Below you will find a link for GCP’s February 2023 Trade Report, which provides on-going background and context around the many trade and cost pressures we are facing together.
Included below are the Insights of the Month,
- The U.S. trade deficit hit a record of almost $1 trillion in 2022, with more than a third of the total coming from trade with China. The Commerce Department reported the annual goods and services trade deficit rose 12.2% to $948.1 billion.
- Talks for a new labor pact between West Coast dockworkers and their employers are stretching into a 10th month, but with no agreement in sight and volumes dropping, patience is wearing thin.
- Maersk, a bellwether for global trade, said “muted” economic growth is set to push the world’s container shipping volumes down by as much as 2.5% this year. The world is facing “a significant inventory adjustment” after a period where demand has been “absolutely exceptional.”
- The question of how trucking capacity is growing or declining is common in industry, but the reality is that demand fluctuations are far more important to monitor as they swing much more violently. Trucking demand visibility is far more important than supply.
- In its second estimate of fourth quarter gross domestic product (GPD), The Bureau of Economic Analysis reported the economy grew at an annual rate of 2.7%, compared to projections of 2.5% after rising 3.2% in the third quarter.
- At a time when margins are tight and economic volatility is relentless, the ability to plan with accuracy is invaluable for suppliers and distributors. When supply chain partners are able to rigorously track performance and use that data to make informed decisions about market opportunities, they avoid costly mistakes, improve efficiency and gain long-term competitive advantage.
- Freight costs are stabilizing after steep declines in the second half of ‘22, but inflation and the threat of recession are making demand levels difficult to predict. Freightos’ Head of Research, shares insights on what’s driving these trends and provides the latest data on freight rates, congestion, capacity changes, and demand levels.
- In 2023, salaries in the U.S. are expected to rise by an average of 4.6%, representing the biggest jump the nation has seen in 15 years. The primary reasons for the increase include high inflation rates and a tight labor market. Are industrial employers doing enough to counterbalance rising living costs and retain their top talent? And how will manufacturing workers fare in the coming months?
- Industrial production was unchanged for the month of January. However, the manufacturing sector was the biggest positive contributor in January, posting a gain of 1.0%. Looking at the details, both auto and non-auto manufacturing rose in January, posting gains of 0.5% and 1.0%, respectively.
For a deeper look into all these topics and more open the full report in the link below. This months report is 2660 words, 8.5 minute read.
