As the world looks to pare an oncoming wave of inflation, it is facing headwinds from high freight rates that are currently prevalent all across the globe.
The global shipping industry suffered like every other industry in 2020 due to the Covid-19 pandemic.
It was expected to bounce back like all of them, and thereby spearhead the global economic recovery.
However, a number of factors are affecting that recovery, not the least of which is uncertainty in the global shipping sector.
That uncertainty itself is fueled by high freight rates, and indications are that those rates are not coming down any time soon.
Here’s why the freight rates are so high, and what that trend may lead to in the coming months or years: