The 3 carriers of the modern economy

6th June 2022

Bloomberg and economics times reported the lowering of the prices of the 3 key indicators of the economy i.e. shipping containers (26%), semiconductors (14%)  and fertilizers (14%) in their latest report. The last boom in their prices caused inflation to soar to big heights. But this decrease in prices may offer some resort to the people in hard times. 


Causes: Worsened by ongoing supply chain disruptions, port congestion along the East and West Coasts is driving the price of shipping containers downward, a trend that is expected to last for the next few weeks, according to research from Germany-based technology firm Container XChange. Moreover, the stockpiling of wheat, without any export from Ukraine has driven the demand for shipping containers down, pulling their prices along with it.

The boom in the semiconductor industry and the shortage attached to it are being relived as people around the world have started to now work offline. This cause the mega demand to be slowed down, and hence the prices of semiconductors.

The prices of ammonia are more than 87% higher than last year. Buyers in south-Asian countries are reluctant to pay such high prices for the fertilizers, creating a low demand for fertilizers. hence in the current scenario, the prices of fertilizers dropped.

Effects:  Lowering of stock prices of the companies in this sphere. China again getting a boost for the world manufacturing house as the restrictions on Covid have now been lifted in Shanghai and Beijing.

What this means for you: The inflation is still high up in the air. This lowering of prices has brought temporary relief to the world, not a high hope. So make use of the opportunity, if you have any control over these spheres, and start preparing for the high inflation.

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