Are US supply chain problems over?
Source：The Hill
From：Taiwan Trade Center, Los Angeles
Update Time：2022/11/29
The United States has grappled with bottlenecked supply chains for more than a year, contributing to a historic jump in inflation. In recent months, there are signs that supply chains are slowly returning to normalcy. However, a shortage of truck drivers and an unreliable railroad industry could contribute fresh difficulties.
In December 2021, the New York Federal Reserve’s global supply chain pressure index soared to an all-time high and remained elevated for much of this year. In the last few months, this index has cratered, reaching its lowest level in nearly two years. Soaring inflation is now forcing US consumers to spend less, slowing demand, and helping supply chains recover.
According to Freightos, Global shipping container prices, which have become a key indicator of supply chain difficulties over the past couple years, have fallen 70% from their record high in 2021.
While products are reaching American shores on time more often, companies are having trouble moving goods within the U.S. due to limited trucking and freight rail capacity. This has been caused in large part by the lack of sufficient workers in the trucking and freight rail industries. Even river transportation has been crippled by drought-induced low water levels in the Mississippi River.
The American Trucking Associations describe the industry as facing a shortage 78,000 drivers. Railroads, which carry nearly one-third of US freight, laid off almost 30% of the industry’s workface in the preceding years. These workforce shortages have contributed to persistent delays for deliveries of care parts, industrial chemicals, fertilizer, fuel and food. Food alone has seen a 13% annual increase in cost.
Finally, rail unions are looking set for a December strike. Bindiya Vakil, CEO of Resilinc, estimates 169,000 US manufacturing and distribution sites that account for nearly 400,000 products are at risk of being stranded with no other way of reaching their destination.
Source: https://thehill.com/business-a-lobbying/business-lobbying/3709929-are-us-supply-chain-problems-over/