Maritime freight can raise prices in Brazil by 1.2%, points out UNCTAD

Consumer prices in Brazil may increase by an additional 1.2% next year because of the persistent increase in maritime freight prices, according to the United Nations Conference on Trade and Development (UNCTAD).

The rise in freight results in an increase in the price of imports globally by around 11%, with a lag of one year. In turn, consumer prices are less affected compared to imported prices, due to a smaller proportion of goods transported by international ships.

UNCTAD explains that its simulation takes into account current highs in sea freight costs and the corresponding increases in production costs, which would be entirely passed on to consumers, without changes in other components such as wages.

The impact of ocean freight varies from country to country, ranging from a 1.2% increase in consumer prices in Brazil to a 4.2% increase in Slovakia.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/11/18/frete-maritimo-pode-elevar-preco-no-brasil-em-12percent-aponta-unctad.ghtml

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