Supply pressures may be nearing peak

WASHINGTON:

The historically high pressures on global supply chain networks that have contributed to shortages of key goods and materials and a surge in inflation may have peaked, according to a new index released by the New York Federal Reserve on Tuesday. The Global Supply Chain Pressure Index (GSCPI) surged early in the pandemic when China imposed lockdown measures. Pressures eased as production resumed but picked back up during the winter of 2020 as Covid-19 infections jumped. “More recently, the [index] seems to suggest that global supply chain pressures, while still historically high, have peaked and might start to moderate somewhat going forward,” the researchers wrote in a blog post. The index is based on 27 variables such as shipping rates and air freight costs between the United States, Asia and Europe.

Published in The Express Tribune, January 5^th, 2022.

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