Shipping Crisis Update

Given the magnitude of what's happened due to the shipping crisis, it's no surprise that everyone just wants it to end now. However, we've learned that this crisis isn't going anywhere anytime soon. So, what can we expect in the upcoming months?

What is the Expected Impact of this on Consumer Prices?

According to a recent report from the United Nations Conference on Trade and Development (UNCTAD), this shipping crisis, and the high freight rates associated with it, have definitely hindered economic recovery post-COVID-19.

There is little that can be done about it, and the current levels of elevated prices show that there will be a global import increase in pricing by 11%, leading to a rise in consumer prices by 1.5%, anytime between now and 2023.

Update on Trade Routes

Even though the crisis isn't concluding soon, port congestion across the globe is slowly starting to ease. There has been a marginal decrease in spot rates by 0.5% in the past week alone. The major trades of Shanghai to Rotterdam saw a 3% decrease, while Los Angeles to Shanghai saw a 2% decrease.

Unfortunately, congestion seems to have gotten worse in the United States, with Shanghai to Los Angeles increasing by 1% and Shanghai to New York by 3%.

Asia has seen a significant decrease in congestion, with Hong Kong-Shenzehn's ship count dropping to 10.4%. Similarly, Singapore is doing quite well as well. However, this development isn't the same across the continent as it has been reported, and Tianjin and Manila's backlog increased in the past week.