John Whelan: Shipping costs fuelling fresh inflation fears

With upwards of 80% of all goods trade transported by sea, freight-cost surges are threatening to boost the price of everything imported into Ireland

Transporting a 40ft freight container of cargo by sea on one of the busiest routes used by Irish traders, from China to Europe, has increased by 547% higher than the seasonal average over the last five years. 

The global economy has done better than almost anyone expected coming out of the pandemic-induced recession of the last year, pushing up Irish goods exports by a spectacular 25% in the first quarter year-on-year.

The roll-out of the vaccine and the lifting of Covid restrictions have created much of the international demand, with an added surge driven by wholesalers and retailers who ran down on stocks due to slow demand last year, and who now need to restock urgently.