The current surge in container freight rates, if sustained, could increase global import price levels by 11% and consumer price levels by 1.5% between now and 2023, said UNCTAD’s Review of Maritime Transport 2021, Report informs.
A surge in demand for consumer goods during the pandemic has created major supply bottlenecks worldwide, which has impacted the supply of container ships and boxes to transport cargo.
The current surge in freight rates will have a profound impact on trade and undermine socioeconomic recovery, especially in developing countries, until maritime shipping operations return to normal. The impact is expected to be more significant for smaller economies that depend heavily on imported goods for much of their consumption needs.