Afternoon Coffee: March PMI registers 10th consecutive month of growth; Suez Canal boat vessel declares General Average; PRO recap: Payable strategies, Hot List, PaymentWorks Stock

Economic activity in the manufacturing sector continued to grow in March, according to the latest Manufacturing ISM Report on Business numbers released yesterday.

The March PMI number registered 64.7%, indicating an expansion in the overall US economy, according to a press release issued by the Institute for Supply Management. March’s reading was up 3.9 percentage points from the February reading of 60.8%.

March’s number counts an expansion in the overall economy for the 10th consecutive month as any reading above 50 counts as growth. The economy has continued to grow after a contraction in March, April and May of 2020 because of the Covid-19 pandemic.

"The manufacturing economy continued its recovery in March,” Timothy R. Fiore, Chair of the Institute for Supply Management Manufacturing Business Survey Committee, said in the press release. “However, Survey Committee Members reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and materials. Extended lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are affecting all segments of the manufacturing economy.”

Suez Canal-blocked vessel’s owner declares General Average

As shippers work to pick up the pieces after the Suez Canal blockage from the Ever Green container, the vessel’s owner, Shoe Kisen, declared General Average, according to the website the Loadstar.

The vessel is at anchor in the Bitter Lakes area undergoing inspections, with a possible date of departure yet to be set. There is no reported damage to cargo, but the cost of the salvage operation — which involved 11 tugs and two dredgers — could amount to a sizeable bill, the article said.

The problem for cargo interests is that the cost of the casualty is likely to take time to determine, especially if it involves claims from other parties. This means adjustors will remain unable to fix the level of general average and salvage securities, the article reported. This can leave shippers with uninsured cargo vulnerable to losing it, as owners can hold goods under lien until a deposit is paid. Shippers with insured goods will have these deposits covered by insurers.

Spend Matters' analysts look at payable strategies, contingent workforce/services and PaymentWorks

This week, Spend Matters PRO analyst David Gustin concluded his five-part series on payable strategies for the long tail suppliers. Also, PRO analyst Andrew Karpie gave us a rundown of the biggest news in the contingent workforce/services market with his March Hot List. Finally, analyst Nick Heinzmann provided a solution overview of PaymentWorks, a supplier information management and fraud prevention solution provider.

Our PRO subscribers can read the full articles, but all readers can see the lengthy intros that frame the issues being discussed. This week:

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