The current index is at its second-highest level in records dating back to 2016, and the future gauge shows little respite a year from now. The index has proven unnervingly accurate in the past, matching up with actual costs about 90% of the time.
The gauge is built on a monthly survey of corporate supply chiefs that asks where they see inventory, transportation and warehouse expenses - the three key components of managing supply chains - now and in 12 months. economic indicator known as the Logistics Managers’ Index. Now India’s massive Covid-19 outbreak is threatening its biggest ports.įor anyone who thinks it’s all going to end in a few months, consider the somewhat obscure U.S. Less than two weeks ago, hackers brought down the largest fuel pipeline in the U.S., driving gasoline prices above $3 a gallon for the first time since 2014. A deep freeze and mass blackout wiped out energy and petrochemicals operations across the central U.S. Drought has wreaked havoc upon agricultural crops. A freak accident in the Suez Canal backed up global shipping in March. Read More: How the World’s Companies Wound Up in a Deepening Supply Chain Nightmareįurther exacerbating the situation is an unusually long and growing list of calamities that have rocked commodities in recent months.
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