Global Economic Recovery Constrained by Surging Shipping Rates

Surging container shipping rates globally could constrain global economic recovery especially for the smaller countries dependent on sea for imports, according to U.N. agency UNCTAD.

Consumer demand accelerated during the pandemic and due to ports closure around the world has led to shortage of container ships and containers itself.

Industry experts believes the supply chain crisis would extend into 2022.

UNCTAD Secretary General Rebeca Grynspan noted, “”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,”.

UNCTAD in its Review of Maritime Transport for 2021 stated, if the current surge in container freight rates is sustained, import price globally would rise by 11% and in turn consumer prices by 1.5% between now and 2023. The impact could be weigh heavily on smaller nations.