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Global supply chain pressures are easing — for now

Delays shorter and shipping costs lower but geopolitics and China’s Covid policy remain a threat

Military exercises in the Taiwan Strait do not bode well for global supply chains. Yet, aside from the potential for tensions between Beijing and Taipei to spark disruptions, the logistics snafus that became hallmark of the pandemic-era economy are abating.

After a turbulent 18 months — triggered by what industry specialists describe as a “perfect storm” of factors ranging from chronic under-investment and Covid-19-induced closures to a giant container ship getting stuck in the Suez Canal — recent data point to a return to relative calm.

The average cost of taking the standard 40-foot metal box across the world’s oceans is down by about 45 per cent from its peak in the autumn of last year, according to data from international freight company Freightos.

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