Supply chains seem to be getting back to normal – WTO

Supply chain disruptions are easing, partly thanks to weakening US demand for goods, according to data from German research body the Kiel Institute for the World Economy.

Ships are now facing shorter waiting times at harbours, and there’s been a “sharp decline in freight rates for goods shipments from China to North America and Europe”, The Financial Times reports.

Bloomberg also says that talk of “normal” is returning to supply chain circles. It cites a report from Copenhagen-based Sea-Intelligence that says half of shipping congestion has been resolved and “a full reversal to normality should come in March 2023”.

The latest Logistics Managers’ Index notes that there are “truckloads of excess capacity”, “hints of moderation across all cost/price metrics” and signs of a “return to business as usual over the next year”.

But Bloomberg notes there is still cause for caution. “Fragile supply chains are heading into another holiday season vulnerable to shocks ranging from freakish weather and dockworker strikes to China’s COVID lockdowns and Russia’s war in Ukraine.”