Is the Global Supply Chain Crisis Over? New Data on Port Bottlenecks is Highly Encouraging! Some are saying that the supply chain crisis is over. Furthermore, that there is no need to price in more rate hikes from the Federal Reserve!
However, when we look at freight rates, we aren’t seeing any positive effects from the declogging of the ports. And this is not priced in.
There is still a widespread supply crunch and most Nordic shipping companies have not seen any improvement over the past few months. I’m not sure you can change their view by showing them a chart of the port situation in LA.
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In conclusion, despite this reversal, prices along multiple shipping routes have remained significantly elevated (but indeed are no longer rising). Lastly, when one thinks about the effects these costs have on inflation it seems to me that the price level is more important than the rate of change.
