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Does supply travel by land in this game?

I'm playing the Allies and have captured PM. I keep sending supplies here from New Caledonea and Australia. I have also captured Buna and is currently attacking the town nearby. It's been almost a month now and I do not notice any increase in supply in Buna and it doesn't seem to send supplies to my attacking force in the next hex. I did increase the supplies in Buna by sending a small transport TF. It was risky because Rabaul is active. Gili Gili is still in Japanese hands though it is effectivly isloated. I have naval superiority.

Yes they do, but usually the bigger base keeps most of it and only gives the smaller connected base the minimum it needs.

Thanks.  I read the manual and it says that supplies get sent by land but penalties are quite harsh. So I guess I'll risk it and send supplies to Buna by sea transport since I have air superiority already.  Wait for the troops there to replenish and then continue my attack on the neighboring village.   But at this stage, AP and AK are very scarce due to losses in the previous encounters.  The Japanese are in a worse situation since I mostly see barges sending supplies around.

guess you´re playing against the AI?