April 2024
SIZZLING HOT DEALS ~ TRENDS ~ AND "NEUS"
From the Archives
Neus Worthy Stories You Should Know
Big Rate Hikes Industry Wide
December 2021
As we have reported in earlier news articles that we have shared, prices are going up. This fall we saw some of the fastest changing prices in our history in this business.
Neu Images continues to search for and offer you, our clients, the best possible quality product, at the best possible pricing and the quickest turn around.
We are receiving new price structures from all our suppliers on a daily basis. Therefore you will also see that reflected in the price we have to charge.
This is not something we do lightly but we know that the bottom line is important to all our survivals.
All orders will require price confirmation at time of placement. We do apologize for this inconvenience, but we are forced to follow suit with what is happening to us all.
We will do our best to keep you informed and hold down the fort.
Thank you for your continued patronage and trust in our company.
UPS Announces Big Rate Hikes
October 30 2021
This information just in from UPS; our preferred shipper:
“During this past year we have all experienced change as our businesses and communities navigate through this challenging time. We remain committed to making a difference investing in the strength of our global network of employees to positively impact your business.
We continue to advance our technology to improve the customer experience and enhance our network so you can keep your commitments to your customers, reliably. To help you plan ahead, below is a summary of the changes to our rates for 2022″.
The following changes will take effect on December 26, 2021:
• | The rates for UPS® Ground, UPS Air, and International will increase an average net 5.9%. |
• | UPS Air Freight rates within and between the U.S., Canada, and Puerto Rico will increase an average net 5.2%. |
Effective January 9, 2022:
• | Remote Area Surcharge will now apply to deliveries to certain ZIP Codes in the 48 contiguous states, as well as UPS On-Call Pickup requests in those ZIP Codes. The Remote Area Surcharge also applies to certain ZIP codes in Alaska and Hawaii, as it has in the past. |
Power Summit 2021: Supply Chain Challenges Compel Companies to Rethink Sourcing
By Sarah Lavenduski
October 14, 2021
Thanks to the ongoing supply chain mess, it will soon be too late to receive packages before the end of the year. It’s easy to blame COVID for the headaches, but in actuality, the virus was an accelerant poured on an already-smoldering fire. That’s the sentiment from top promo suppliers.
“Some companies are chartering their own vessels. They’re using different, smaller ports.” It’s gotten so challenging that retail giant Walmart even launched a new “last-mile” delivery service called GoLocal to help facilitate delivery. The Home Depot was the first retail partner of GoLocal, which will provide same-day and next-day delivery of Home Depot products in several states.
At the same time, suppliers have to be more willing to warehouse inventory for longer than usual. The just-in-time inventory system is broken. The pandemic showed how brittle it was. There’s been a surge in demand, but it takes time to restart the industry. It’s like starting a cold engine.”
Recent data from the Port of Long Beach, the country’s second-busiest container port after Los Angeles, and found that the number of arriving imports had increased by 15% between August 2019 and August of this year. That’s causing congestion and a lack of hands to unload ships.
In addition, suppliers in Asia normally work overtime in the summer to meet Q4 demand. Because of COVID, that didn’t happen this year. China, the promo industry’s number-one origin point of goods, has also experienced power
outages because of a domestic surge in demand, as well as tension between electricity companies and the Chinese government (along with historic flooding that recently hit the country’slargest coal producer). That complex situation is also contributing to inventory uncertainty.
In addition, the supply chain is simply too lengthy. A single T-shirt or pair of jeans can travel through four or five countries before it finally reaches the U.S. “There needs to be a focus on regionalization. Companies are looking to source closer to the consuming market. It’s not necessarily in-country, which for the U.S. is rare, but at least in the same hemisphere. We need to shorten the supply chain.”
It’s no longer enough to have just a couple sources of supply. “Companies are going to have to look for smaller ports and different modes of transportation. Textile operations are scouring the countryside right now, diversifying away from the largest suppliers.”
For too long, the promo industry has relied heavily on China. That has to change, and COVID has shown why. “We have to diversify the supply chain. Promo may be able to use Walmart’s [GoLocal] shipping line.”
As for an improvement timeline, it’s hard to forecast. Rong is looking at the summer of 2022 or even Q4 of next year. She’s also monitoring COVID cluster outbreaks in China and the upcoming Chinese New Year in Q1. “There are just too many uncertainties right now.”
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