Jonathan Saul

LONDON, (Reuters) – A rise in container shipping costs poses a threat for the global economic recovery. Small countries that rely on sea deliveries are expected to suffer most from an increase in import prices.

The pandemic caused a surge in consumer demand, which led to major supply shortages all over the globe. This has had a significant impact on the availability of containers ships and cargo boxes.

Officials from shipping and ports expect disruptions in global supply chains to continue into 2022.

Rebeca Grynspan UNCTAD Secretary-General, said that “the current increase in freight rates” will impact trade negatively and hinder socioeconomic recovery.

UNCTAD’s Review of Maritime Transport 2021 stated that the surge in container shipping rates could cause an increase of 11% in global import prices and a 1.5% rise for consumer prices between 2021 and 2023.

According to it, “The effect is likely to be greater for smaller economies who heavily rely on imported goods for most of their consumption needs.”

UNCTAD stated that maritime supply chain players, including ports and container lines as well as inland transport providers and customs, “should collaborate to share information and improve maritime transport efficiency”.

It stated that “In the face these cost pressures, and long-lasting market disruptions, it is becoming increasingly important to monitor and ensure transparency in setting rates, fees, and surcharges.”