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Surge in shipping rates hinders global economy recovery: UNCTAD

The United Nations agency UNCTAD said on Thursday that a leap in container shipping could pose a threat to the recovery of the global economy. The agency informed that the small nations that rely on sea delivery was anticipated to be hit the hardest, by an increase in prices for imports.

During the pandemic, a surge in demand for consumer products generated huge supply bottlenecks around the world, affecting the supply of container ships and boxes to transport cargo.

Global supply chain disruptions are expected to last until 2022, according to shipping and port officials.

‘Until maritime shipping operations return to normal, the recent increase in freight costs will have a dramatic impact on trade and hamper socioeconomic recovery, especially in developing countries,’ Rebeca Grynspan, the UNCTAD Secretary General said in a statement.

According to UNCTAD’s 2021 Review of Maritime Transport, the present jump in container freight costs, if continued, might raise global import prices by 11 percent and consumer prices by 1.5 percent between this year and 2023.

‘The impact is projected to be greater for smaller economies that rely largely on imported commodities for much of their consumption demands,’ the report stated.

Container lines, ports, inland transportation providers, customs and shippers should cooperate together to share information and make maritime transport more efficient, UNCTAD commented.


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