US Businesses Face Unprecedented Supply Chain Disruptions
Summary
US businesses are facing severe supply chain disruptions driven by shipping blockages, container shortages, high fuel costs, tariffs and weather shocks, with some companies saying conditions are worse than during COVID-19. Coffee prices, diesel costs and other input prices have surged, squeezing margins and making future planning difficult.
Key Points
- Businesses across the US say the current supply chain crisis is more disruptive and unpredictable than the COVID-19 pandemic.
- Coffee, diesel and shipping costs have risen sharply because of tariffs, the Iran war, Red Sea disruptions, Russia’s diesel export ban and weather-related delays.
- Companies such as Dilworth Coffee and Ravenox say they are under intense pressure, with shrinking margins and shorter supply windows.
- The ISM survey suggests the economy is operating, but with far higher volatility, costs and uncertainty than before.
