meta_pixel
Tapesearch Logo
Log in
The John Batchelor Show

#PRC: #ScalaReport: The container rates climb, Shanghai to Long Beach. Chris Riegel, CEO Scala.com #Stratacache

The John Batchelor Show

John Batchelor

Society & Culture, Arts, News, Books

4.52.8K Ratings

🗓️ 5 August 2023

⏱️ 11 minutes

🧾️ Download transcript

Summary

Photo: Lisbon 1910. No known restrictions on publication.
@Batchelorshow


#PRC: #ScalaReport: The container rates climb, Shanghai to Long Beach. Chris Riegel, CEO Scala.com #Stratacache
https://www.msn.com/en-us/money/markets/world-trade-forecast-cut-as-maersk-flags-fears-for-economy/ar-AA1eLO0d

Transcript

Click on a timestamp to play from that location

0:00.0

Click and Collect is now available at Selected London Primark stores for kids, baby and nursery products.

0:07.0

Shop exclusive ranges online, select your collection day and get notified when your order's ready to collect.

0:13.0

Go to Primark.com and shop Primark Click and Collect today, little prices, big smiles.

0:20.0

This is CBS, I'm John Batch, the Scholar Report with Chris Regal, the CEO of Scholar.com, a global technology firm transforming the retail space with digital signage.

0:36.0

We go immediately to China because the reports over these last weeks from China bulls, from China bears is that there is no recovery comparable to what was expected after the COVID lockdown.

0:49.0

And at the same time, there's evidence that the business investment in China is ebbing and that CEOs are cautious to reluctant to continue to use China in the supply chain in the supply chain globally.

1:07.0

I've talked to Chris about electronics and the Pearl River Valley, but now we have a question of more than electronics this has to do with apparel.

1:17.0

Sometimes called the rag trade and by the old sharp talking of the 20th century.

1:23.0

A record number of US fashion companies reports Bloomberg no longer lists China as their top supplier.

1:31.0

61% of apparel retail CEOs stopped using China as their primary supplier according to the US Fashion Industry Association.

1:40.0

In addition, a chart accompanying the story in Bloomberg says that over the next two years, the companies expect to decline their use of China to decline by 78%.

1:52.0

And who are the winners? Vietnam, Bangladesh, India and Cambodia are the big four winners of the factory floor of cotton goods.

2:02.0

This has to do with the persecution of the Uyghurs and the act of Congress, but at the same time this is part of the Chinese economy that doesn't get a lot of attention t-shirts, clothes, fashion.

2:15.0

And it's not the high margin business of electronics, but it is in disrepair.

2:21.0

And according to this, the world is exiting. Chris, a very good evening to you.

2:27.0

Does this comport with what you see in electronics in especially in the Pearl River basin, retreat or hesitancy over the next two years to continue to use China as a primary supplier? Good evening to you.

2:41.0

Good evening, John. Even pre-pandemic, you were starting to see apparel business migrate out of China, not for political, holistic reasons, not for strategic regime regions, but more specifically because of the costs for labor in China are now not the lowest cost in the world.

3:01.0

Not impossible to say that that's a four to six dollar USD per hour range pretty commonly apparel jobs went to Vietnam went to India went to Bangladesh because labor costs are much lower and apparel being an extremely low margin business.

3:17.0

China was no longer competitive in many of those sectors. So that's the the basis for the migration of jobs in the apparel industry out of China.

3:24.0

You do not see or do you see comparable migration of jobs in electronics? I mean, gizmos, not the hot, not the fabs, not the high end chip making, but electronic devices around the home or say units for, you know, that talking box from Amazon, I won't use your name because it lights up across the country.

3:46.0

Is that sort of electronics leaving China? That is starting to migrate out of China as well. The difference being apparel has a relatively simple supply chain where electronics does not, but you've seen major producers like Apple start to say, hey, we're migrating the labor intensive builds of smartphones of tablets out of China at volume.

4:10.0

So that same labor issue is hitting electronics just they have a little bit better margins to be able to deal with the short term, but they're certainly starting to migrate out as well.

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from John Batchelor, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of John Batchelor and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright © Tapesearch 2026.