Insider: The Global Supply Chain Shows Signs of Recovery

Jul 13, 2022

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The supply chain crisis that sprawled over the US is ameliorating as we approach the post-pandemic era. As reported by Alex Kantrowitz in an analysis from logistics company Flexport, there has been an “important gauge slide down”, with visible improvements to shipping time, costs and inventory management. 

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Goods are taking less time to get across the ocean. Shipping is getting cheaper. Flexport's Ocean Timeliness Indicator tracks the dramatic dip from 110 days in 2021 to 95 days in 2022 in the time taken for goods to be shipped from Asia to the United States. Similarly, the Baltic Dry Index which reports how much it costs to ship bulk commodities has dropped to its lowest level since April 2021.

The recovery of the supply chain crisis bodes well not only to merchants but consumers as well. While Morgan Stanley warns that supply chains stabilizing may be dreadful news for corporate profits, it may provide some relief to the consumers who have gotten used to waiting months for more expensive goods. Furthermore, with the stabilization of the supply chain coupled with abundance of inventory, consumers will also be able to enjoy some cost savings which cushions the impending inflation.

Source: The Supply Chain Crisis Is Getting Better — And It Could Make A Lot Of Things Cheaper Soon

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