The pressure on global supply chains continued to ease in July, according to The New York Federal Reserve’s latest data. The Global Supply Chain Pressure Index (GSCP) has declined for the third straight month, reaching its lowest mark since the start of 2021. However, The New York Fed points out that GSCP is still at a historical level.
In an interview with Yahoo Finance, Scott Surredin, DHL CEO for the North America Supply Chain, also shared a similar sentiment.
“It’s definitely stable,” Surredin said. “We are actually moving volume very, very well. But I will say inventory levels are really building.”
There are several reasons why the supply chains are returning back to normal. For one, the consumers are returning to their pre-pandemic habits and are enjoying traveling and away-from-home activities more. Also, the logistics hubs and warehouses have adapted well to the issues that plagued them last year and in early 2022, allowing them to process the cargo more efficiently. The weakened demand might have also played a role, with inflation prompting consumers to be more cautious about their purchases.
The relaxed pressure on supply chains is expected to continue in the future, with more than 40% of U.S. manufacturers expecting to further improve their delivery times, according to a recent survey from the Philadelphia Fed.