As ocean freight rates continue rising to record heights on the back of spiking demand, Unctad has called on regulators to take action as a matter of urgency.
Airing its concerns in a policy brief issued yesterday, the United Nations Conference on Trade and Development warned that rising rates would most likely last well into the rest of the year while lines, on the face of it, continued to profit – some might even call it profiteering – from upheaval in the ocean freight sector.
Policy Brief 84’s appeal for public sector intervention at executive level comes at a time when shippers continue to bemoan the burden of rate increases while blank sailings and non-availability of containers weigh on the import and export sector.
According to Unctad, lack of reliability and related cost effects will continue to hinder trade unless regulators step in to prevent abuse by lines.
One way to do this, it urges, will be to strengthen competition authorities.
The policy brief also calls for enhanced transparency, progressive policy formulation, and improved cargo tracking.
If this is not done, Unctad claims, lines will continue to set the course for disproportionate profit margins while Covid-19 continues to disrupt supply chain efficiencies.
