Transportation Bottlenecks and Aggregate Shocks
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The signal
A CEPR report addresses transportation bottlenecks as a source of aggregate economic shocks. The analysis connects localized transportation constraints to broader supply chain disruptions affecting multiple regions and sectors, suggesting that bottlenecks in key logistics corridors can propagate systemic effects across interconnected trade networks.
What This Means for Your Supply Chain
What if a major transportation bottleneck reduces capacity by 20% for 6 months?
Model the impact of a sustained 20% reduction in transportation capacity across key trade corridors for a 6-month period, affecting both inbound supplier delivery and outbound customer shipments.
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