UNCTAD reported that the surge in container freight rates is causing an increase of 11% in global imports and 1.5% consumer prices between now 2023.

According to the report, consumer prices would rise in the United States by 1.2% and China by 1.4%, depending on the country. Analysis showed that consumers prices would rise 7.5% in countries smaller and more dependent upon imports.

By product, electronics, furniture, and apparel would see the greatest price increases — of at least 10% globally — due to supply chain distribution, UNCTAD said, noting containers account for 17% of total seaborne trade volume.

Due to the rising cargo shipping costs, some companies choose to ship smaller items by air. However, air freight is generally more costly.

Analysis found that the rising cost of container shipping would have a negative impact on major economies’ growth.

The report stated that industrial production, which is a key driver of growth in America and Europe, will fall more than 1% and 0.2% respectively in China if container freight rates increase 10% and supply chain disruptions continue.

Kuehne+Nagel, a Swiss logistics company, said that more than 600 containers were still stuck in ports around the world as of October. This is twice the number at the beginning of this year.Squawk Box Asia.” Late last month, the company predicted that congestion would continue until February.