The United Nations Conference on Trade and Development (UNCTAD) said on Thursday that high freight rates could soon boost global consumer prices by 1.5% in 2023. The Geneva-based agency said in its annual maritime report that shipping rates had quadrupled over the past ten years, and the cost to ship a forty-foot container from China to the US was now 348% higher than the average before the pandemic.
UNCTAD said continued demand, supply uncertainties, and concerns about port efficiency would keep shipping costs elevated for the long term. The impact would be most profound in smaller, trade-reliant countries that may experience a 7.5% cumulative increment in consumer prices. Electronics, computers, and optical products will likely see a sharper increase in prices than others, the report said. Prices of imported furniture, garments, textiles, and leather goods could also rise by 10%.
The UN urges governments to step up vaccination programmes to stimulate broader economic recovery, which will allow consumers to channel their spending from goods to services. In addition, increasing port efficiency, trade facilitation, and shipping connectivity are needed to improve the ocean shipping environment. The UN estimates that transport costs could fall by about 4% through significant structural improvements to the shipping industry.
