THE International Monetary Fund has said rising shipping costs as a result of the ongoing war between Russia and Ukraine may worsen inflation in Nigeria, and other nations in the world.
The Washington-based lender disclosed this in a report titled, ‘How soaring shipping costs raise prices around the world.’
It added that the cost of shipping a container on the world’s transoceanic trade routes had increased seven-fold in the 18 months of the year.
It said, “Our analysis predates the war in Ukraine but isn’t isolated from it: the conflict will likely exacerbate global inflation.Sea carries more than 80 per cent of the world’s traded goods, most of which sail inside 40-foot-long steel containers stacked by the thousands atop some of the largest vessels ever built.
From Shanghai to Rotterdam to Los Angeles, the coronavirus upended supply chains. Ports lacked workers who were homesick. Truck drivers and ship crews couldn’t cross borders because of public health restrictions. Pent-up demand from huge stimulus programs during extended lockdowns overwhelmed the capacity of supply chains. Besides causing delays in getting goods to customers, the cost of getting them there surged” – The Punch