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The dynamic impact of global shipping costs on the food import bill

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Year of publication 2025

Place of publication Rome, Italy ;

Pages 2 p.

Author FAO

Publisher FAO ;

Product type Policy brief

Category Policy brief

Series title Trade policy briefs

Series number 61

To cite or share https://doi.org/10.4060/cd7892en

Synopsis (short abstract) Maritime transportation is essential for countries to access basic goods in global markets and to support food security and nutrition, as almost one-quarter of global agricultural production is traded internationally. Disruptions can place significant strain on maritime transport networks, forcing longer shipping routes, increasing fuel and insurance costs and contributing to sharp rises in freight rates. Between 2020 and 2022, nominal shipping costs rose more than tenfold compared with pre-pandemic levels, before reverting back. Empirical evidence shows that shocks to dry bulk and container freight rates have substantial effects on the global food import bill (FIB). A 10 percent rise in shipping costs increases the FIB by between 1.24 percent and 3.40 percent within a year, with over 70 percent of the effect materializing within six months. Net food-importing developing countries experience even stronger impacts, particularly from container shipping costs, due to limited competition, lack of direct routes, and smaller trade volumes. For these countries, a 10 percent increase in container freight rates raises the FIB by about 4.3 percent. Maritime disruptions therefore pose significant risks to food security and macroeconomic stability. Effective responses combine short-term measures to protect consumers from freight-driven food price inflation with long-term investments in port infrastructure, logistics systems and regional integration pathways that reduce transport and trade costs over time.

Cite this content as:

FAO. 2025. The dynamic impact of global shipping costs on the food import bill. Trade policy briefs, No. 61. Rome.


https://doi.org/10.4060/cd7892en

Language English

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