Hope floats

Just in time for Santa, there are signs that the supply chain knot has begun to loosen. It was bound to happen, sooner or later, because supply chains don’t always stay locked up. Eventually trade wins. Or at least it always has before.

Not all is bright, not all is calm. There is still a shortage of truck drivers in the nation. (Somebody said a shortage of 80,000 drivers!) And the backlog of computer chips is still going to affect the prices of a lot of things, used cars included. And no telling what plans this virus has for next month. But there are good signs that we can’t ignore.

CNN reports that the port congestion is easing. As you knew it would. Money loosens things.

When the world shut down its many economies in early 2020 to combat covid-19, and factories around the world sent employees home, business stopped in its tracks. If the business of America is business (Coolidge, C.), then the business of much of the world is making things for American businesses to sell. And when the vaccines came out, business went from zero to 60 in an instant, thus causing the supply chain knot.

Reports say that backlogs are easing, according to manufacturing surveys. “And supplier delivery rates appear to be improving, albeit from very poor levels,” according to that CNN report. Once upon a time, the port of Los Angeles had 80 container vessels anchored in its waters, waiting to be unloaded. Now that number is closer to 30.

The Dallas Federal Reserve reports that unfilled orders fell last month, and so did delivery time.

Economists at Moody’s and Jeffferies are optimistic.

Barclays says shipping costs have peaked.

Americans have to give some credit for this to the Biden administration, which moved to ease pressure on ports by moving them to 24/7 operations. That came in handy in this crisis, especially this time of year. Give credit where due.

Two weeks till Christmas. Looks like Santa will make the deadline.