Pressures on the global supply chain have shown signs of easing, a trend that should translate into less pressure on commodity prices in the months ahead.
Compared to before the pandemic, ports and warehouses are still congested, and businesses are still struggling with shipping rates and delivery times that remain well above normal. Still, this smoother supply chain is likely to provide a source of relief for an economy that is still struggling with rapid inflation. High demand as well as ongoing shortages and delays in delivery of some products have helped push up prices for cars, toys, furniture, food and other goods.
“It’s a huge traffic jam that’s being unblocked,” said Phil Levy, chief economist at freight forwarder Flexport.