Headlines
UN raises alarm that surging freight rates are pushing up import prices

The report warned that the high freight prices if sustained, will have a knock-on effect on import and consumer price levels.
The report titled the Review of Maritime Transport, says freight rates are expected to remain high, fuelled by continued strong demand against a backdrop of growing supply uncertainty and concerns about the efficiency of transport systems and port operations.
The average price for a 40-foot container stands at US$9,146.41, according to shipping consultancy Drewry’s World Container Index. The benchmark decreased 0.5% last week but remains 238% higher than a year ago. Drewry expects rates to remain steady this week.
The report comes as container lines are booking hefty profits. Last week, French shipping line CMA CGM reported an eye-watering profit of US$5.6bn for the third quarter, up from US$567mn for the same period last year.
It is a similar story at other major carriers; Maersk, for example, notched up a profit of US$5.5bn for Q3 – a five-fold increase on the same period last year.
In what they said was an attempt at calming the market and inflation fears, shipping companies moved to freeze spot rate increases earlier this year and shift to longer-term contracts.
However, experts were skeptical of the impact of such measures. “In other words, setting a cap on spot rates is a different way of saying that a higher willingness to pay on spot is not necessarily what gets you space on the ship. And, of course, if the market is at peak anyway there is nothing lost in implementing such a cap,” Lars Jensen, a shipping container specialist, wrote on LinkedIn at the time.
Steve Saxon, a partner at McKinsey, said in a briefing last week that longer-term contracts are likely to become more common and this will help stabilise the market. He added that shipping rates may “normalise” in the first half of 2022: “When we say normalise, we don’t see rates likely to fall back down to the levels seen in 2019.” In a less optimistic scenario in which there is prolonged congestion at ports or further Covid outbreaks, rates will remain elevated next year, he said.
The potential effect of high freight rates on consumer and import prices varies by country groupings. UNCTAD suggests small island developing states or SIDS, and least developed countries (LDCs) are most at risk of higher prices because they depend more on the international trade system for goods.
The research shows SIDS are facing a 24.2% hike in import price levels, while LDCs could be lumped with an 8.7% rise.
“The impact is generally greater in smaller economies. Thus, in Estonia consumer prices would rise by 3.7% and in Lithuania by 3.9% compared with only 1.2% in the United States and 1.4 per cent in China,” states the report.
“This partly reflects their greater ‘import openness’ – the ratio of imports to GDP – which is typically higher in smaller economies – 55% in Lithuania and 60% in Estonia, compared with 11% in the United States and 15% in China.”
The findings also indicate that sustained high shipping rates would not only impact exports and imports, as well as production and consumer prices, but also the prospects for short and medium-term economic recovery from the pandemic. Governments including those of China, the US and Vietnam are “worried” about this and have raised concerns about shipping companies, UNCTAD says. An investigation into carriers has also been launched by competition authorities in Australia.
Elsewhere, UNCTAD’s report predicts that annual growth in maritime trade between 2022 and 2026 will slow to 2.4%, compared with 2.9% over the past two decades. It also states the pandemic has accelerated maritime “megatrends” such as digitalisation and sustainability that are set to transform the industry over the longer term.
Headlines
House of Reps gives NIMASA green light to disburse CVFF –appoints audit firm to coordinate, monitor disbursement

“Rt. Hon. (Barr.) Legor Idagbo – Chairman ii. Hon. Henry Nwawuba – Member iii. | Mrs. Kehinde Bolade Olaiya – Committee Clerk.
Headlines
President Tinubu appoints Gbajabiamila Chief of Staff

An authoritative source in the Presidency confirmed the development on Thursday.
The source said the president finally made the decision after wide consultations on the contending candidates.
Gbajabiamila has been a member of the House of Representatives since 2012 and has just been re-elected to the House in the last elections.
The choice of Gbajabiamila by the president is not a surprise to many political pundits as he has been a very close ally to the president.
They are part of the brains behind the formation of the All-Progressives Party (APC).
He will now have to forgo his seat in the House of Representatives if he accepts the appointment.
Olufemi Hakeem Gbajabiamila CFR, is a Nigerian lawyer and foundation member of the APC.
He has been a member of the House of Representatives since 2019.
Gbajabiamila was born in Lagos in 1962 and attended Igbobi College for his secondary education and the University of Lagos as part of his education.
He is married to Salamatu Gbajabiamila.
Headlines
Maritime media, NUJ mourn as Ray Ugochukwu passes on to glory

“The death of Ray came as a big shock to the union.
“We are going to miss his courageous attributes and mentorship.
“He was also one of the pillars of the Lagos Council of NUJ and served the union meritoriously in his capacities as the Chairman of, the Seminar Committee; and as a Member, the Committee on Milestone Recognition of Media Icons In Nigeria.
“He spent most of his life in ensuring the advancement of Maritime Reporting as well as the welfare of Journalists.
“He worked in several media houses.
“Among his giant strides, he was a former President of the Maritime Reporters’ Association of Nigeria (MARAN); President, Maritime Journalists Association of Nigeria (MAJAN); and a former Chairman of the Daily Times Chapel of NUJ.
“The legacies of Ray are indelible and will exist forever.
“May God grant his soul eternal rest” the Lagos NUJ said in a statement signed by Leye Ajayi, the Council Chairman and Tunde Olalere, the Council Secretary.
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