According to a report by the United Nations Conference on Trade and Development (UNCTAD), soaring global container freight rates are likely to push up global consumer prices by 1.5 percent and import prices by more than 10 percent next year. Consumer prices could rise by 1.4 percentage points and industrial production could be knocked down by 0.2 percentage points.

"Until shipping business returns to normal, the current surge in freight rates will have a profound impact on trade and undermine socio-economic recovery, especially in developing countries," said Rebecca Grynspan, UNCTAD Secretary-General.

Overall global consumer prices will rise by 1.5 per cent

With the gradual recovery of the global economy after COVID-19, shipping demand has surged, but shipping capacity has been difficult to recover to pre-epidemic levels. The contradiction has led to soaring shipping costs this year.

For example,In June 2020, the SCFI spot price on the Shanghai-Europe route was less than $1,000 per TEU. By the end of 2020, it had jumped to about $4,000 per TEU. By the end of July 2021, it had soared to $7,395.On top of that, shippers face shipping delays, surcharges and other costs.

The UN report said: "Analysis by UNCTAD shows that from now onBy 2023, if container rates continue to soar, global import prices will rise 10.6 percent and consumer prices will rise 1.5 percent."

Soaring shipping costs affect different countries differently, and generally speaking,The smaller the size of the country, the higher the import share of the economy, will naturally be more affected.Small island developing states (SIDS) will be hardest hit, with consumer prices rising by 7.5 percentage points due to surging shipping costs. LLDC consumer prices are likely to rise by 0.6%. In the least developed countries (LDC), consumer prices are likely to rise by 2.2%.

Import prices and consumer prices are affected differently in different types of countries

By country, as shipping costs soar,Consumer prices will rise 1.2 percent in the U.S. and 1.4 percent in China.By product category, prices of electronics, furniture and clothing were the most affected by the rise in shipping prices, rising by at least 10 per cent worldwide.

Economic growth and industrial production will also suffer

Soaring container shipping costs will also weigh on economic growth in major economies, the analysis said. If supply chain disruptions continue, the report says,A 10 per cent rise in container rates would lead to a 1 per cent fall in us and eurozone industrial production and a 0.2 per cent fall in Chinese production.

According to Kuehne+Nagel, a Swiss logistics giant, more than 600 container ships were stuck outside ports around the world by the end of October, double the level at the start of the year. The company predicted late last month thatPorts and routes will be congested until at least February.

Supply chain crisis to what extent?

The coldest Thanksgiving ever, supermarkets limit the purchase of daily necessities: the timing is close to the Thanksgiving and Christmas shopping holidays in the United States, but many shelves in the United States cannot make up for the shortage, which would have only happened in the run-up to Christmas, but began to ferment 2 months earlier. As global supply chain bottlenecks continue to affect U.S. ports, highways and rail traffic, the White House has acknowledged that consumers will face more shortages during the 2021 holiday shopping season.

The global supply chain is facing a serious crisis. American stores, supermarkets and even hypermarkets are often out of stock these days, ranging from food, drinks, clothing and daily necessities. Supermarket shelves are not replenished, the choice of goods is reduced, and stores are not sure when they will be replenished, or even remove shelf labels. Major supermarket chains have also reinstated "purchase limits," limiting purchases of necessities like toilet paper, as they did at the start of the outbreak. The supply chain crisis is weighing heavily on the global retail and transportation industries, with some companies issuing a series of downbeat forecasts and the fallout spreading.