UN Warns Of Spike In Consumer Prices Amid Surge In Freight Rates

Global import price levels could rise by 11% and consumer price levels by 1.5%

GENEVA • The United Nations warned yesterday that a surge in container freight rates could mean higher prices for consumers next year unless pandemic-fuelled problems are untangled.

The UN’s trade and development agency (Unctad) said global import price levels could increase by 11 per cent and consumer price levels by 1.5 per cent between now and 2023.

“Global consumer prices will rise significantly in the year ahead until shipping supply chain disruptions are unblocked and port constraints and terminal inefficiencies are tackled,” Unctad said in its Review of Maritime Transport 2021 report.

Global supply chains faced unprecedented demand from the second half of last year as consumers spent on goods rather than services during coronavirus lockdowns.

But the upswing in demand hit several practical constraints, including container ship carrying capacity, container shortages, labour shortages, congestion at ports and Covid-19 restrictions.

The mismatch led to record container freight rates “on practically all container trade routes”, according to the report.