US supply chain stress is poised to intensify
US supply chain stress tracker brought bad news in February. Inflation took up the baton from transportation and now represents the most stressed aspect of supply chains as input costs rose and firms exercised pricing power. Good news from the transportation front, however, was diminished by greater activity and labour pressures, while inventory tensions subsided slightly.
What you will learn:
- While backlogs at the Los Angeles and Long Beach ports fell during the month, elevated shipping costs and air freight demand – alongside the absence of positive news from the trucking front – has meant a continuation of logistics stress.
- Wholesale services inflation and durable and nondurable goods manufacturing costs remained high.
- Inflationary pressures are certain to grow given the Ukraine war’s impact on commodity prices.
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