22 Nov 2021
Global Supply Chain Bottlenecks Starting to Ease
The Index Today
Supply chain disruptions are showing slight signs of easing down as ocean freight rates and prices retreat. Industry experts are saying complete normality of operations may be seen sometime next year.
Factory closures and energy crunches in Asia have also begun to ease over recent weeks. Economists have said the consumer demand for goods is still on the rise as holiday season approaches. However, the risk of more supply chain issues could increase as covid-19 cases emerge across Europe.
Experts have said that supply chain choke points, if managed quickly, could help streamline the entire process and reduce pressure. It is expected that U.S port backlogs could soon be cleared early next year. Jan Held, a German ship-owner said that supply chain congestion in the region of Asia is starting to show signs of improvement. Upon being asked when the global system should go back to normalize levels, he said, “For that, the pandemic has to end and that is not happening anytime soon, in my opinion.”
Major retail chains such as Walmart, Target, Home Depot and others have said they are ready for the holiday season and are fully stocked to deal with an increased consumer demand. Many retailers planned ahead to avoid supply chain bottlenecks and have goods imported earlier than usual. Many went as far as to charter their own container ships for goods.
Trinh Nguyen, economist at Natixis in Hong Kong said, “It’s a huge change in a positive way as it should improve industrial output in Asia and global supply. There are certain aspects of supply chain shocks that are easing, but the shortage issue isn’t going to completely disappear.”