The United Nations warns that global supply chain bottlenecks may drastically hike import and consumer costs.
In a recent report, the United Nations Conference on Trade and Development said that high consumer demand and a variety of supply-side constraints — including “container ship carrying capacity, container shortages, labour shortages, continued on and off COVID-19 restrictions across port regions and congestion at ports” — could lead to price hikes through 2023.
According to a summary of the analysis:
Manufacturers in the United States rely mainly on industrial supplies from China and other East Asian economies, so continued cost pressures, disruption and delays in containerized shipping will hinder production, according to the report. A 10% increase in container freight rates, together with supply chain disruptions, is expected to decrease industrial production