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Some prices may spike by 10 percent due to surging shipping costs

By FOX 5 NY Staff
Updated  November 20, 2021 8:29am EST
Business
FOX 5 NY

Local small businesses struggling with supply chain challenges

Issues with the nation's supply chain are causing shortages nationwide, and small businesses are no exception.

The rate for a single shipping container has skyrocketed over the last 18 months as the coronavirus pandemic disrupted supply chains and trade channels.

That surge in container rates could send consumer prices 1.5% higher over the next year, according to a report from the United Nations Conference on Trade and Development (UNCTAD).

According to the report, the impact on consumer prices will vary by country and product, the report said.

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"UNCTAD’s analysis shows that the current surge in container freight rates, if sustained, could increase global import price levels by 11% and consumer price levels by 1.5% between now and 2023," the UN report said Thursday.

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By country, the U.S. would see consumer prices rise by 1.2%, while China would see a 1.4% increase, the report said. The analysis found that smaller countries more dependent on imports would see consumer prices rise by a much higher 7.5%.

By product, electronics, furniture, and apparel would see the greatest price increases — of at least 10% globally — due to supply chain distribution, UNCTAD said, noting containers account for 17% of total seaborne trade volume.

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