Increasing Pressure on the Global Supply Chain

The New York Fed has warned that the quarantine in China, the war in Ukraine, and rising air freight costs between the US and Asia are increasing the pressure on the supply chain.

Increasing Pressure on the Global Supply Chain. The New York Fed, which shared the April data of the Global Supply Chain Pressure Index, which was published for the first time at the beginning of this year, warned. In a written statement made by the bank, it was emphasized that supply chain disruptions continue to pose a great challenge as the world economy recovers from the Covid-19 outbreak. It was noted that in addition to geopolitical developments, the restrictions imposed in China also increased the pressure on global supply chains. In addition to all these, the increase of global supply chain pressures in April was mainly due to delivery times in China and the Euro Area, and increased air freight costs from the USA to Asia, the statement said. The statement in question included, "These developments can be attributed to the strict quarantine measures regarding Covid-19 implemented in China, as well as the consequences of the Ukraine-Russia conflict on supply chains in Europe."