Pressure easing on global supply chain
News: According to WSJ, Covid-related factory closures, energy shortages and port-capacity limits have eased in recent weeks and the ocean freight rates have receded from the record levels. However, normalisation of trade is still expected early CY22.
Views: The reduction of logistics costs is expected to lower upward pressure on inflation and expected to improve industrial output in Asia. Shortages of shipping containers is also easing, resulting in buildup of positive sentiments for exporters.