Supply chains are under plenty of stress, but they're not breaking. Here's why

Global supply chains have faced recent disruptions, with traffic through the Suez Canal affected by attacks and the Panama Canal impacted by drought. Other challenges include the collapse of the Key Bridge in Baltimore, a rail labor dispute in Canada, and a potential contract expiration for dockworkers. However, experts suggest that supply chains today are more resilient due to lessons learned from previous disruptions. Retailers have taken precautions to avoid out-of-stocks, and increased shipping activity may be driven by higher tariffs and strong consumer spending. Despite higher shipping costs, businesses have limited pricing power. Container prices have started to decline, and the expectation is for prices and activity to normalize in the coming months. The possibility of a port shutdown due to contract disputes could have devastating consequences. However, there is hope that a strike can be avoided, with the expectation of government intervention.