The supply chain bullwhip is doing the Fed’s job on inflation

Containers at the Port of Los Angeles. (Photo: Jim Allen/FreightWaves)

The only thing surprising about the freight market slowdown is the speed at which it’s unfolding. The supply chain “bullwhip effect” is both predictable and expected. The surge of inventories and declining freight costs/capacity imbalances will be deflationary.

The bullwhip effect is something every supply chain 101 student learns about – the idea that upstream providers overproduce in reaction to a one-time demand shock.

What is the bullwhip effect? 

According to the Chartered Institute of...

https://www.freightwaves.com/news/the-supply-chain-bullwhip-is-doing-the-feds-job-on-inflation

Is supply chain deflation next?

Infinity Logistics aquires Glencore's metals warehousing business

The only thing surprising about the freight market slowdown is the speed at which it’s unfolding. The supply chain “bullwhip effect” is both predictable and expected. The surge of inventories and declining freight costs/capacity imbalances will be deflationary.

The trucking market has slowed. Demand for trucks usually surges during the Spring, but this year, demand for truckload freight has broken out of this typical seasonal pattern.

Outbound Tender Volume Index (OTVI) is an index which...

https://www.freightwaves.com/news/is-supply-chain-deflation-next

COVID-19 Commodity Chain Disruption and The Global Bullwhip Effect

  • New pathogens generated unintentionally by agribusiness are not themselves natural-material use-values.
  • They are toxic residues of the capitalist production system.
  • It can be traced to agribusiness commodity chains as part of a globalized food regime.
  • The ripple effects of combined ecological and epidemiological disasters are felt.
  • They have been introduced by today’s global commodity chains and agribusiness.
  • This has given rise to the COVID-19 and disrupted the entire system of global...

https://mfame.guru/covid-19-commodity-chain-disruption-and-the-global-bullwhip-effect/