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High shipping rates to last until Q3

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Global bottlenecks for shipping which are resulting in higher freight rates are expected to remain high until the third quarter of the year, disadvantaging trading economies.

In its weekly economic preview, a market intelligence firm said the continued strong recovery in the global economy is followed by an increase in prices of raw materials and worldwide shipping woes.

“With peak shipping season looming for Christmas retail orders from the US and Europe, shipping bottlenecks and freight rates in Asia are likely to stay at elevated levels during the third quarter,” their chief economist said.