Australian consumers and businesses will pay more for everything from chocolate and sofas to mining equipment as shipping crises in the Red Sea and Asia fuel the worst freight delays since the pandemic and threaten to stoke local inflation.
“At a time when the inflation fight on goods, as opposed to services, is looking in excellent shape in most places, this is a spanner in the works that we could do without. Operations manager at ESS Shipping Amanda Bradfield said farming and mining equipment, furniture and confectionery were among the long list of imported items from Europe stranded in Singapore.
Minister for Transport Chee Hong Tat warned the situation could be compounded by an increase in container volumes as companies bring forward export schedules out of Asia.Freight and Trade Alliance director Paul Zalai said the international shipping industry was now confronting a “new normal” by diverting around the southern tip of Africa. That ongoing delay paired with chaos in Singapore would result in higher prices for Australian consumers, he warned.
But shipping lines were then hit by extra fuel costs incurred from taking cargo around the Cape of Good Hope instead of passing through the Suez Canal when Houthi attacks on vessels started in late 2023, pushing freight rates up again.
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