From chip shortages shuttering car plants for weeks to shipping delays and soaring costs, the pandemic has shone a spotlight on global supply chain deficiencies.
Not all supply chain problems will linger. Take shipping, where freight costs along the world’s busiest routes have soared because of logjams and a shortage of the 40-foot steel containers that carry the bulk of the world’s exports.
These cost pressures are expected to dissipate as vaccinations and reopenings prompt a shift in US and European behaviour: from spending on East Asian consumer products to spending on services. While container shipping prices are expected to remain higher than before the crisis, they are unlikely to stay at their current levels. It now costs about $4,000 for a container between East Asia and the US west coast, up from $1,500 at the start of 2020.