Supply chain will take a year to recover

Par thierno - 11 April, 2021 - 13:48

The return to normalcy on the global supply chain, very disrupted by the pandemic and which suffers delays and price increases, could take a year, estimated the president of the U.S. Central Bank.

"We think that the supply chain will adapt and become more efficient, it could take a year, but it will happen," said Jerome Powell, President of the U.S. Federal Reserve Bank (Fed) on the sidelines of the spring meetings of the IMF and the World Bank.

The world shipping is indeed very disturbed since the end of 2020 by the strong increase in purchases of goods, consumers spending almost nothing for a year in restaurants, travel, theaters or other services.

However, these goods are very often manufactured in Asia, causing congestion in ports and a shortage of containers to transport these items.

As a result, shipping rates are skyrocketing, which will lead to higher prices, fueling speculation of high inflation in the coming months in the United States.

As the economy reopens, "there may be a spike in demand, there may be bottlenecks," he agreed, but "we think that effect will be temporary.