Global Supply Chain
Halted shipments, disrupted supply lines, and global economic recovery. The cost of this nightmare to consumers is staggering!
Halting production means higher prices on the goods we need for our day-to-day lives. At the same time, the crash in trade speed slows down any progress towards reconstruction from last year’s crisis.
It is no secret that the global economic recovery has been slowing down. What many people do not realize, though, are some of its potential setbacks – namely, supply chain disruptions like those Moody’s Analytics warn will get worse before they get better.
Due to pandemic-related delays, frequent demand for ocean freight from Asia to the US & less capacity, ocean rates are still increasing and transit times are getting unpredictable.
Transpacific ocean costs stayed level after a notable drop a week ago. But the rise in oil prices could make carriers increase fuel surcharges at the end of the month. Also, LA/Long Beach port congestion & delays are making Asia-US prices remarkably high. The congestion may also push North America-Asia export rates up more than 10% this week to over $1,000/FEU.
According to some trade statics, about 25% more cargo was shipped from Asia to the US from January to August compared with the same period in the year 2019. The volumes have largely remained the same between Asia and Europe.
According to some industry experts, these supply chain hiccups will fade quickly. Industry experts believe excellent market systems should adjust to what companies have done in times past when faced with problems like this one – proving himself right time after time again about how resilient our economy can seem, even through rough patches such as these!