The global economy was challenged by supply chain disruptions over the last two years. Congestion in ports caused delivery problems and product shortages. These supply-side bottlenecks were one of the reasons for high and persistent inflation.
More recently, inflation has begun to stabilize at high levels. Forecasters are divided on where core inflation will end in 2023. SpaceKnow’s supply chain indicators can offer some insights.
SpaceKnow has several indices to observe activity and demand at US ports.
The port container level index tracks the area covered by containers in ports, and it can be interpreted as a capacity/congestion indicator. The index increased above the 5-year historical average level in the second half of 2020 and it remained there until the beginning of November 2022. Recently, the index broke its resistance above this level and it has reached the lowest level seen over the last two years. Interestingly, the index dropped at a time when seasonal congestion rises. In this environment, the economy will be more sensitive to shifts in demand or supply.