Risk of global economic recovery due to increase in container shipping rates

New Delhi: The rise in container shipping rates has put global economic recovery at risk. The biggest adverse effects of the increase in import costs are likely to be on small countries dependent on imports, according to the United Nations agency on trade and development (UNCTAD).

The massive increase in demand for consumer goods during the Corona epidemic resulted in worldwide supply disruptions.

This disruption has affected the availability of container ships and boxes for movement of goods.

Shipping companies and port officials believe that this global disruption of the supply chain will continue into 202.

A report quoted UNCTAD Secretary-General Rebecca Greenspan as saying that the current rise in freight rates would have a long-term effect on trade and would hinder the socio-economic recovery, especially in developing countries.

If the current rise in freight rates continues, global import costs will rise by 11 per cent and consumption costs by 1.50 per cent within the next two years, according to a review by Maritime Transport for 2021 by UNCTAD. This will have the most serious impact on small countries, which are largely dependent on imports for their consumption.