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Welcome to the Thomas Index report for the week of January 24.
Two new reports released earlier this month illustrate record impact supply chain disruptions on global shipping costs, noting that the current disruptions are even greater than those of the 2008 financial crisis.
The first report from the Federal Reserve Bank of St. Louis notes that ocean freight prices have changed by more than 72 percentage points during the pandemic. This period spans from early 2020, when companies were slowing shipments at the start of the pandemic, to a peak in the third quarter of 2021, when prices were more than 50% above average container shipping rates. This 72 percentage point change in ocean freight pricing is significantly greater than the 41 percentage point change seen following the 2008 financial crisis.
On the Thomasnet.com platform, our data shows that request for sea freight services is up 111% from last quarter averages.
In the second report, released by the Federal Reserve Bank of New York, economists developed a global supply chain strain index to take a closer look at the disruptions affecting supply chains globally. Analyzing figures dating back to 1997, the report explains that supply chain pressures related to COVID-19 have far exceeded long-term supply trends, reaching a new high in October 2021.
But, they explained, a return to decline the following month could indicate that “global supply chain pressures, while still historically high, have peaked and may begin to moderate somewhat. in the future”.
Looking ahead, the digital push of Industry 4.0 is poised to revolutionize the logistics industry by optimizing the sustainability of global supply chain services. In 2019, the global next generation supply chain market generated about $32 billion. Over the next eight years, the size of this market is expected to more than double.
I’m Shawn Fitzgerald, and this is the Thomas Index report.
Top 10 categories with the most sourcing activity month over month
- Mining machines: 5,400%
- Aluminum contract manufacturing: 3,322%
- Burners: 2,778%
- Meters: 1986%
- Boxes: 1,762%
- Turnstiles: 1,683%
- Protective clothing: 1613%
- Industrial vacuum cleaners: 1521%
- Machining: 1218%
- Repair services: 1,194%
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