Tracking Global Market Conditions

Stay up-to-date on global market conditions that are affecting Service Providers.

Summary of Market Conditions

Comtrend continuously watches global market trends and stays close to potential changes in order to work proactively to provide the best experience for our customers. Below are some factors in the changing market dynamics and their market effects.

Changing Market Dynamics Market Effects
  • Outsized market demand

  • COVID-19 constraints

  • Boom in electronic sales & Explosion of IoT

  • Chip production shifted to outsourcing

  • Global 5G and EV initiatives

  • Shift to remote workers and users
  • Market-wide price increases at all levels of production

  • Delayed transportation of goods

  • Capacity issues and lead-time extensions

  • Scroll down for more details about the Market Effects.

Watch here for how the global computer chip shortage happened.

Market Effects & How This Could Possibly Effect You

Market-Wide Price Increases at all Levels of Production
– JJS Manufacturing

Major and smaller chipset companies
General component manufacturers
Packaging providers
Freight companies
Raw materials
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Delayed Transportation of Goods

Containers shortages
Port congestion
Chassis shortages
Driver shortages
Border delays and closures
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Capacity Issues and Lead-Time Extensions

Limited foundaries
Manufacturers at full capacity
Shortages of raw materials
Component supply chain disruptions
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"Despite some recent assurances the chip shortage will ease in 2022, a new global survey of engineers believes the worst it yet to come with longer lead times and higher prices looming over the next 18 months."
"Shenzhen, the biggest city in the manufacturing hub of Guangdong province, told all businesses not involved with essential public services to suspend production or have employees work from home for a week starting Monday."
“'With enough time to still move cargo by air, the pre-holiday rush, along with pandemic-restricted capacity is pushing air cargo rates up',” he said, adding that the Freightos Air Index showed the China to North Europe rate was at $9.59 per kg in mid January— up over 50% from below $6 per kg at the start of January."
"It is likely that despite component manufacturers’ best efforts to keep costs to a minimum, customers will continue to see increased prices throughout 2022 for the following reasons..."
"Copper pricing has increased by a huge 17.5% over the last 3 months andwill impact cable, wire, PCB’s etc."
“The congestion at ports has some companies forgoing maritime shipping for airfreight to get popular or seasonal items on store shelves faster."
"With retailers still struggling to keep inventory levels up and already looking to get a leg up on peak season, there may be no relief from high costs, long delays, and equipment shortages."
“Slower container circulation cripples global shipping system."
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