The global supply chain crisis which has had significant impacts on global supply chains and product stock levels all around the world may have finally reached its peak, according to the New York Federal Reserve.
The NY Fed revealed its new index this week, which combines a number of different metrics of data from across the supply chain to gauge the situation.
The Global Supply Chain Pressure Index uses data from two other indexes, the Baltic Dry Index (BDI) and the Harpex Index, which tracks containing shipping rates.
Prices indices are also used to gauge the cost of air transportation of freight coming to and from the US, Asia and Europe and enables the tracking of global supply chain distractions.
READ MORE: Hugo Boss to reduce reliance on South-East Asia by shortening supply chain
All of the data used is tracked back to 1997.
The NY Fed announced that the results of the index suggest that “global supply chain pressures, while still historically high, have peaked and might start to moderate somewhat going forward.”
The supply chain crisis has been the focus of analysts for months, after companies have suffered huge losses as a result.
Jefferies analysts estimated that the crisis would ease up by mid-2022 last October.
However, other groups have a more pessimistic outlooks on the situation, believing the supply chain challenges would last for another two years as companies struggle to work through the backlog.
Several major retailers have agreed and said they’re expecting delays and shortages to last well into 2022.
