Supply Chain Disruptions May Ease In The Second Half Of 2022, Insurer Says



Abigail Ng | CNBC

Global supply chain disruptions may continue until the second half of next year, trade credit insurer Euler Hermes said in a report published Thursday.

Euler Hermes cited renewed virus outbreaks, China’s zero-Covid policy and expected trade volatility during the Lunar New Year.

Measures to contain Covid-19 can affect manufacturing and shipping operations, exacerbating the supply chain crisis. Analysts have previously warned that the new variant, omicron, could deal another blow to supply chains.

Production shortfalls are behind 75% of the current contraction in global trade volume, while logistic bottlenecks are the cause of the remaining 25%, Euler Hermes economists wrote.

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