80 percent of the goods transport is done by ships.
From toys, furniture and auto parts to coffee-sugar, the price of things like coffee and sugar is also expected to be affected significantly due to increase in shipping cost.
New Delhi. From coffee to toys etc. have become expensive. Due to the increase in the cost of shipping goods worldwide in the last few days. Due to this, the price of imported goods coming from abroad has increased.
The cheapest transportation in the world is by ship. Therefore, 80 percent of the shipping of goods is done through ships. The fare of the container used for this has increased by 547%. In a news published in the Navbharat Times, a shipping company said that the fare for a 40-feet container from Shanghai, China to Rotterdam has reached $10,522.
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Toys can cost almost doubleFrom toys, furniture and auto parts to coffee-sugar, the price of things like coffee and sugar is also expected to be affected significantly. Because of this, there may be more burden on the pockets of people already struggling with inflation in many countries of the world. The founder of a toy store in Britain said he had never seen such a challenging situation in the past 40 years of the toy retailing business. There is so much pressure to increase the price that the price of the toy can almost double. Regarding the impact on retail sales due to this, he said that yes it will have an effect.
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The situation became worse due to the second phase of coronavirus infection.
The main reason for the increase in shipping container fares is the increase in demand around the world. Along with this there is shortage of shipping containers, poor condition of ports and reduction in the number of workers working on ships and docks. Due to this, the speed of the ship carrying the goods has been affected. In Asian countries, recently, the situation has become worse due to the second phase of coronavirus infection.
200% increase in container shipping cost expected
HSBC Holdings Plc estimates that container shipping costs may increase by 205 percent compared to last year. This can have an impact of two percent on the prices of goods. It is worth noting that earlier the shipping cost was not being taken very seriously as it was a small part in the process of reaching the customer.