[Asia Economy Reporter Park Byung-hee] It has been confirmed that global supply chain disruptions are resurging due to the prolonged Ukraine war and China's stringent COVID-19 lockdown measures.
Bloomberg reported on the 17th (local time) that the Global Supply Chain Pressure Index for April, released by the Federal Reserve Bank of New York, recorded an increase from the previous month for the first time this year.
The supply chain pressure index, which was 2.8 in March, rose to 3.29 in April. This index peaked at a record high of 4.45 in December last year, then declined to 3.8 in January and 3.3 in February.
Supply chain disruptions intensified as delivery times for goods from China and Europe lengthened, and air freight costs between the US and Asia increased. It was also confirmed that backlogs of goods orders are accumulating in the UK.
The supply chain pressure index is based on zero; a positive value indicates that supply chain disruptions are more severe than usual. The index has maintained positive values continuously since early 2020 when the COVID-19 virus began spreading.
The New York Fed explained that the current supply chain pressure index is much higher than during the 2008 global financial crisis or the 2017-2018 US-China trade dispute.
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