Friday, December 3

‘The worst is over’: the global supply chain crisis relaxes and gives holiday shopping a break

We are short of chips for a while, but in the face of that bad news positive news comes from the global supply chain, which little by little seems to be showing signs of recovery.

These signs must be taken with some caution, experts warn, and although the pandemic continues to be the main barrier to stoppages and delays, the transport of goods is picking up some rhythmAnd that’s good for manufacturers and of course for users: Christmas shopping will therefore be somewhat quieter than we would have expected a few weeks ago.

The jam begins to clear

In Asia, where the pandemic has caused devastating effects on the production and distribution of goods – and their prices – things are relaxed: businessman Jan Held’s German shipping company indicated that traffic jams in ports in that region are no longer so huge.

Held warned in The Wall Street Journal that the problem will not be fully resolved until the pandemic is over “And that won’t happen anytime soon in my opinion,” but the signs are being seen in other areas.

Thus, the transport of goods in the Pacific is also improving, and above all the price of containers is doing it. It had gone through the roof and is still three times what it was a year ago, but for experts like Louis Kuijs of Oxford Economics “globally, the worst has happened in the field of the supply chain.”

Several large commercial chains in the US such as Walmart, Home Depot or Target indicated these days that they were well stocked for Christmas, and the large American ports, such as Los Angeles or Long Beach, they are also seeing fewer boats anchored and “waiting their turn”: of the 86 of the past week they have now gone to 71.

Those traffic jams will relax even more after the new year, when the Christmas season and the Lunar New Year are over in China cause Chinese factories to close in China and slow down production.

There are, of course, segments in which that respite has not occurred and, as experts indicate, a rebound in the pandemic – such as the one that is now being experienced in several European countries – could pose problems againBut the truth is that after so much bad news in this area it seems that at last there are signs that indeed the worst – at least in that supply chain crisis – could have passed.

That does not mean that there is news worrying that affect the Chinese economy, which appears to be stagnating in a scenario in which demand weakens and producer prices remain high.

Via | The Wall Street Journal

Leave a Reply

Your email address will not be published. Required fields are marked *