Supply Chains Normalizing

Apollo Chief Economist

Supply chains are normalizing, and the costs of transportation by ship, truck, and train, are coming down, see charts below. The only exception is air freight rates, they are still at $5.5 per kilo, up from $2.5 before the pandemic. Our collection of supply chain charts is attached. The bottom line is that supply chains are normalizing, which will continue to put downward pressure on inflation.

Chart showing rates for various container routes
Source: WCI, Bloomberg, Apollo Chief Economist
Chart showing falling Chinese shipping costs
Source: Shanghai Shipping Exchange, Bloomberg, Apollo Chief Economist
Chart showing declines in various Baltic exchange indexes
Source: Bloomberg, Apollo Chief Economist
Chart showing falling transport rates for various types of trucks
Source: Bloomberg, Apollo Chief Economist
Chart showing falling semi transportation rates in various regions
Source: Bloomberg, Apollo Chief Economist
Chart showing air freight costs coming down
Source: Bloomberg, Apollo Chief Economist
Chart showing inventories and sales for wholesalers and retailers are returning to normal
Source: Census, Haver Analytics, Apollo Chief Economist

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