Since 2020, with the global spread of the epidemic, sea freight has risen sharply, shipping space is in short supply and ports are blocked, bringing great difficulties to international trade in 2021.
The UN Conference on Trade and Development (UNCTAD) noted in its Shipping Review 2021 that if the surge in containerized shipping costs continues, global import prices could rise by 11 percent and consumer prices by 1.5 percent between now and 2023.
The impact of higher freight rates will be greater in small island developing States, where import prices could rise by 24 per cent and consumer prices by 7.5 per cent. In the least developed countries (LDCs), consumer prices are likely to rise by 2.2 per cent.
In addition, freight rates are expected to remain high due to continued strong demand combined with supply uncertainties and concerns about transportation and port efficiency.
Freight rates will also affect low value-added goods, such as furniture, textiles, clothing and leather goods, whose manufacturing is often dispersed in low-income economies far from the main consumer markets. UNCTAD forecasts a 10.2 percent rise in consumer prices for these products.