This text is taken from the Courrier de l’économie of August 15, 2022. To subscribe, click here.
The average cost of transporting a container on the world’s oceans was just under US$6,000 last week, according to the specialized firm Freightos. We had not seen it this low since May last year. This is almost half less (-47%) than its peak in September ($11,109) and 40% lower than it was again last March ($9,777).
There has also been a decrease in the number of ships queuing at the Port of Los Angeles (-75% since the start of the year) and delivery conditions between Canadian companies and their suppliers have returned to what they were at the end of 2020.
-47%
This is the difference between the average cost of transporting a container in September ($11,109) and last week ($6,000).
These are all signs that good news is gradually emerging: the famous problems that plagued global supply chains, and which contributed to the surge in inflation in recent months, are gradually easing.
This improvement is due to several factors. There is the slowdown in the economic recovery, and therefore in the demand for goods which it was difficult to meet until then. The relaxation of health rules has also enabled households to return to their old consumption habits, which are more balanced between goods and services. Companies have also learned to strengthen their supplier networks and manage them more effectively.
And then, the war in Ukraine is not having as pronounced an impact as feared on the supply of oil and grains, or this impact is diminishing. There is also the weather, which is more favorable to farmers this year than it was in 2021.
But recovery will take time, experts warn. It can also be compromised at any time by a return to strict containment measures in China in its fight against COVID-19, for example, or a conflict with Taiwan, which alone accounts for 60% of the world’s production of computer microprocessors.
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