Taking stock of supply chain disruption: what are CBI members doing?

In our September surveys, we asked our members how they were responding to global supply chain disruption. The results suggest that a majority of UK businesses still face significant supply chain challenges. Furthermore, their efforts to overcome these challenges show early signs of re-shaping the pattern of Britain’s trade with the rest of the world.

It has now been two years since an unprecedented surge in shipping delays and freight costs first convulsed the global economy. Soaring lockdown-induced demand for goods overwhelmed global supply networks already struggling with shortages of materials and labour. Congestion and bottlenecks have left businesses unable to reliably replenish inventory or meet production targets, hampering the post-pandemic economic recovery.

Are pipeline pressures receding?

However, the data suggests that pipeline pressures are receding. The Federal Reserve Bank of New York’s Global Supply Chain Pressure Index has improved for five consecutive months. The Freightos Baltic Index - a measure of the market rate