Welcome to GLA! Leading the global logistics alliance.

The pressure on the global supply chain has eased and the inflation rate has decreased

Time:2022-08-17 Publisher:Kevin Num:2556

Previously, the global inflation caused the cost of shipping industry to rise. The local government informed the shipping company that it hoped to reduce the freight to relieve the pressure.

(Related reading: CMA CGM announced lower freedom rates to ease French economic expansion)

However, according to the Wall Street Journal, the inflationary pressure on the US supply chain may be weakening, and the inflation rate has increased at the slowest rate since the autumn of 2021, indicating that the rapid growth of production costs that fuel consumer inflation is easing.

Due to the drop in energy costs, US suppliers have increased their prices at the slowest annual rate since last autumn, reflecting signs of easing inflationary pressure.

In July, the producer price index rose by 9.8% year-on-year, the smallest increase since October 2021, down 0.5% from June, the first month on month decline in more than two years.

As the pressure eases and demand slows down, Maritime Research Institute xeneta said that the spot freight of containers from the Far East to the west coast of the United States has dropped by a third this year.

In the U.S. truck transportation market, dat solutions pointed out that the spot truck loading rate in August was 12 cents / mile lower than the average level in May.

The price data indicates that the inflationary pressure may be easing. Some US economists say that the historical high price may continue until the end of this year. 

However, as the Federal Reserve is still focused on tightening policies to limit the inflationary pressure, the price inflation may decline significantly in 2023.

There is no doubt that when the global supply chain crisis is resolved is still the key to the recovery of the global economy in the post epidemic era, and also the key to the Fed and the major central banks to curb inflation.

In the first half of this year, due to the Russian Ukrainian war and the blockade of Shanghai, the delivery time was delayed, and the global supply chain was also under heavy pressure again.

However, the indexes of S & P global and Morgan Chase show that the global delivery delay has improved this year, and the delivery performance is better than last year.

Morgan Stanley's report points out that the global supply pressure index will continue to decline, while alleviating the import costs around the world, especially the ports in the United States.

Now, the Federal Reserve and the major central banks of various countries have successively accelerated the pace of interest rate increase to curb inflation and slow down demand, and at the same time, relieve the pressure on the supply chain to better recover the local economy.

Prev：The European port strike continues, and the British port of Liverpool announced a strikeNext：Welcome! New Golden Member from China ———— LianDi International Logistics Group