In their newest report—Review of Maritime Transport 2021—the United Nations Conference on Trade and Development (UNCTAD) estimates that the trend of high freight prices in supply chains will most likely lead to raised prices of electronics, clothes, and furniture.
Experts in global trading expect a 10% worldwide increase in the costs of these items in 2022 primarily due to the consequences of the COVID-19 pandemic.
Actually, consumers are buying far more products than they did when the pandemic outbreak began in 2020. What’s more, workers are quitting more, creating a shortage in the workforce managing cargo.
All this leads to overloaded and clogged trading ports around the globe, causing delays or even breakdowns of supply chains. Consequently, businesses sometimes spend ten times the amount they paid before the pandemic to ship the same products by sea.
This is even more pronounced if the products are bulky and take up more space on a container ship. So, you can expect that all big items, from office desks to large toys, will jump in price. Some retailers are even discontinuing the sale of large products to avoid raising their prices to astronomical values.
The UNCTAD report further shows that the effect of the high freight charges won’t be the same for every country. Small island developing states can expect a staggering 7.5% rise in consumer prices, while in the US, the overall costs are expected to grow by 1.2%.
As previously mentioned, the most affected products will be textiles and clothing, furniture, and electronics. Their prices are expected to increase by 10.2%, 10.2%, and 11.4%, respectively. Moreover, plastic and rubber items are also expected to go up in price by 9.4%.
So, if you’re planning to furnish your home this year, you’ll probably have to bear this circumstance in mind when planning the budget.