Sea cargo rates surge to pandemic highs
Market watchers say they will have limited impact on Singapore’s inflation rate for now, though Singapore exporters will feel the effects. But the higher rates could make themselves more felt in the US, says OCBC chief economist
EQUIPMENT shortage, port congestion and a surge in shipments have come together to create a perfect storm, sending ocean freight rates up to highs last seen during the pandemic – and no relief is in sight for the short-term.
Market watchers believe this might have little impact on Singapore’s inflation rate for now unless the surge in rates sticks around.
But at least one economist thinks that exporters in Singapore might feel the effects of the spike in sea cargo rates acutely, and that the elevated rates could also move the needle for the closely-watched inflation figure in the US.
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