Phoenix’s Q3 2022 “Lending Climate in America” survey asked lenders to identify that greatest factor driving the softening global economic conditions. The majority of lenders, seventy-five percent, believe inflation is the greatest factor. Seventeen percent of the lenders surveyed believe that global supply chain issues is the greatest factor. Of the lenders surveyed, eight percent believe the war in Ukraine is the greatest factor driving the softening global economic conditions.

As the ongoing COVID-19 pandemic continues to disrupt global trade, port congestion has reached critical levels. With little to no excess shipping capacity and high demand, Gordon Brothers expects supply chain congestion through at least the first half of 2021.

A previous article in this two-part series reviewed current supply chain stresses, the manufacturing and shipping irregularities causing stress and the pandemic’s continued ramifications for U.S. consumers.

In this follow-up article, Gordon Brothers’ inventory and valuation expert Ulos Anderson takes a closer look at this tight capacity and how sharp increases in shipping costs are compounding current issues. Additionally, he reviews the effects trade with China and demand for consumer products, which have soared amid pandemic lockdowns, have on supply and demand across industries and asset types for those in the banking, lending and restructuring industries.