Ongoing Rise, in Container Freight Rates, Threaten Global Economic Recovery

The United Nations Conference on Trade and Development (UNCTAD) stated that the rise in container freight rates, poses a threat to the global economic recovery, and it is expected that the high prices of imports will be hit hardest than the others.

The increased demand for consumer goods, during the pandemic has led to major supply bottlenecks around the world, which has affected the availability of container ships and cargo boxes.

Shipping and port officials expect global supply chain disruptions to continue through 2022.

“The current rise in freight rates will have a profound impact on trade and undermine social and economic recovery, especially in developing countries, until shipping operations return to (previous) normal,” said UNCTAD Secretary-General Rebecca Greenspan.

In its report on maritime transport for the Year 2021, UNCTAD reported that the continuation of the current rise in container freight rates would, if continued, cause an increase in global import price levels by 11% and consumer price levels by 1.5% between now and 2023.

 “The impact is expected to be more severe for smaller economies, heavily relying on imported goods, for many of their consumer needs.