Shipping rate surge threatens global economy recovery, UNCTAD says

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Shipping rate surge threatens global economy recovery, UNCTAD says
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A surge in container shipping rates poses a threat to the global economic recovery, with small countries dependent on deliveries by sea expected to be hardest hit by a spike in import prices, U.N. agency UNCTAD said on Thursday.

A surge in demand for consumer goods during the pandemic has created major supply bottlenecks around the world, which has impacted the supply of container ships and boxes to transport cargo."The current surge in freight rates will have a profound impact on trade and undermine socioeconomic recovery, especially in developing countries, until maritime shipping operations return to normal," said UNCTAD Secretary General Rebeca Grynspan.

"The impact is expected to be more significant for smaller economies that depend heavily on imported goods for much of their consumption needs," it said.

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