Skip to content
Search AI Powered

Latest Stories

Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Challenging outlook for global supply chains as costs rise while orders fall

Global supply chain activity slowed for the second quarter in a row in Q2, dropping by a further 6 points against forecast estimates.

That’s according to the latest Index of Global Trade Health from Tradeshift, the supply chain commerce platform facilitating digital trade transactions between B2B buyers and suppliers.

Order volumes on Tradeshift’s platform fell to further below expectation in Q2, sliding by a further 6 points following a 7-point drop in the previous quarter. The lack of fresh orders is beginning to impact suppliers, who had only recently been struggling to cope with surging demand. The number of invoices submitted by suppliers dropped by 7 points in Q2, the most significant slowdown in a year.


Orders might be softening, but Tradeshift’s analysis suggests costs have risen sharply since the beginning of the year. The average value of an invoice submitted on Tradeshift’s platform has increased by 11% since the start of 2022, compared to a more modest 3.5% rise in 2021.

Tradeshift’s analysis reveals a remarkably similar pattern across regional supply chains the world over:

Total trade activity in the UK and the Eurozone dropped by 5 points, with new orders and supplier invoices tracking below the expected range.

US supply chains fared slightly better than the global average. Transaction volumes were 4 points below the expected range in Q2, but the volume of new orders remains low.

Chinese trade activity had another challenging quarter as new lockdown measures in key cities contributed to another 7-point fall in transaction volumes against the expected range.

Tradeshift’s data suggests that declining demand is also leading to a cooling-off in activity across the transport and logistics sector. Transaction volumes across the industry dipped below the expected range for the first time in a year after a 5-point fall in activity compared to the previous quarter.

Manufacturing and retail trade activity also remained below the expected range. Technology spending recovered sharply in Q2, with activity tracking well within the predicted range.

“Many of the current supply chain challenges, including inflation, have roots in the pandemic,” said Christian Lanng, CEO and co-founder at Tradeshift. “Some of these problems are transitory, but the bigger issues, including labor shortages, geopolitical tension, and energy transition, are structural and risk becoming entrenched unless businesses take decisive action now.”

“It would be an entirely natural response for business leaders to want to batten down the hatches and wait for the current storm to pass,” said Lanng, “but many of the same problems supply chains face today will still be there a year from now. How long can a business hold its breath before it runs out of air?”

“The majority of business leaders I speak to are keeping their eyes on the horizon and pressing ahead with much-need investments in technology that will allow them to become more agile, resilient, and sustainable.”

https://tradeshift.com/global-trade-report/

Recent

More Stories

Viking Line, Port of Turku and Ports of Stockholm celebrate one year of cooperation to establish a green shipping corridor

On the anniversary on 6 February, the parties and a large number of invited stakeholders gathered for an open seminar in Turku, Finland. Results, experiences, challenges and opportunities were discussed based on the common goal of establishing a green maritime corridor between Stockholm and Turku by 2035.

"We are very pleased with the cooperation and the work done during the first year," says Magdalena Bosson, CEO Ports of Stockholm. "We have been investing in onshore power supply infrastructure for ships for many years and Viking Line is one of the pioneers. Now we are further sharpening our goals together with the other parties to establish a fossil-free shipping corridor between Stockholm and Turku."

Keep ReadingShow less

Featured

TrusTrace Joins Textile Exchange’s Trackit™ Pilot Project to Advance Interoperability and Traceability in Textile Supply Chains

STOCKHOLM, Sweden, February 6, 2025 – TrusTrace, a market-leading platform for supply chain traceability and compliance in the fashion and textile industry, is proud to announce its participation in Textile Exchange’s test pilot project, to evaluate a multiparty Trackit™ system.

The pilot is set to run throughout 2025, marking a significant step forward in advancing traceability and transparency within the textile and apparel supply chain. The project aims to test the performance of an interoperable traceability framework that functions across diverse technology platforms. It is designed to minimize the burden on supply chain operators while maintaining a strong and credible standards system to adapt to an evolving legislative landscape.

Keep ReadingShow less

Warp Announces Preparation for U.S. Government Partnership to Enhance Service and Efficiency

Los Angeles, CA, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Warp, a tech-powered network of cross-docks and carriers offering various vehicle sizes, announced that 2025 it will extend its solutions and services to the U.S. government. Warp aims to modernize government freight logistics with machine-learning-driven planning, optimized network strategies, and flexible solutions to create efficient, cost-effective, and sustainable supply chain transportation.

Focused on optimizing every load, every time, Warp employs machine learning (ML), artificial intelligence (AI), and groundbreaking consolidation techniques to blur the traditional lines of freight shipping by combining the best elements of LTL, FTL, and parcel delivery. Using its homogenous fleet including cargo vans, sedans, box trucks, and 53-foot trailers, Warp facilitates carrier injections, inbound vendor consolidation, pool point distribution, zone-skipping, store replenishment, and national retail distribution for some of the world’s largest shippers.

Keep ReadingShow less
an illustration of a global network

Container xChange launches free leasing marketplace

Hamburg, Germany, 27 January 2025 –Container xChange, a leading global platform for container trading and leasing, has introduced free access to its One-Way leasing network.

With a free signup, businesses gain access to over 1,000 vetted partners across 4,000+ locations, helping users to access container availability and pricing insights on 10,000+ routes at no cost.

Keep ReadingShow less

Freespace Robotics announces strategic partnership and investment from industry leader Matthews Automation Solutions

PITTSBURGH, PA / CINCINNATI, OH – January 23, 2025 – Freespace Robotics, an innovator in autonomous robotics for material handling and logistics, today announced a strategic partnership and investment from the Automation Solutions business of Matthews International Corporation (NASDAQ:MATW), a leading provider of warehouse automation software, controls, and order fulfillment systems. This partnership combines Freespace Robotics’ groundbreaking high-density, dynamic storage cube with Matthews’ industry-leading software, unlocking transformative capabilities for warehouse and last-mile operations.

Freespace Robotics’ pioneering solution leverages advanced robotics to deliver high-turnover, small-footprint, high-rise AS/RS (Automate Storage and Retrieval System) technologies. These innovations incorporate traditionally external conveyor functions – such as sortation, sequencing, each-picking, order buffering and pre-staging – into a seamless end to end operation. Combined with Matthews robust software suite and dashboard, which unify product information and inbound and outbound material flows, the Freespace solution offers unmatched versatility across diverse industries and specialized workflows. Together the companies are poised to strengthen core processes and improve KPIs for efficiency, scalability, throughput and cost-effectiveness.

Keep ReadingShow less