By Katabella Roberts
Global shipping problems that have driven up the price of food and goods may continue to wreak havoc for much longer than anticipated with no relief in sight, according to logistics giant EV Cargo.
EV Cargo is one of the largest providers of transport, logistics, and freight forwarding services across the world and operates in 150 countries, carrying $60 billion of merchandise a year, according to its official website.
EV Cargo is the result of a merger between six major logistics companies with operations across the UK: Adjuno, Allport Cargo Services, CM Downton, Jigsaw, NFT, and Palletforce.
The founder and CEO of the London-headquartered company, Heath Zarin, told the Independent that the problems that have plagued the shipping industry and impacted prices, such as higher fuel prices and continued COVID-19 lockdowns in China, will likely take years to fully resolve.
“It’s going to take a period of years to stabilize and get back to normal,” Zarin said. “It’s very serious overall and another reason why inflation and higher prices are likely to be with us for longer than anybody would like.”
He added, “There will be ups and downs but there won’t be a massive form of relief from elevated prices.”
The Consumer Prices Index (CPI) rose by 9.4 percent year-over-year in June in the UK, where EV Cargo is based. In the United States, the CPI showed that inflation was at 8.5 percent in July 2022, down from 9.1 percent in June.
However, a new poll by Rasmussen Reports published on Aug. 9 showed that inflation is crippling American households, with 89 percent of the 1,000 U.S. adults surveyed saying they’re paying more for groceries now than they were a year ago, while 61 percent anticipate the amount they spend on groceries to be even higher a year from now.
In an effort to curb inflation, House Democrats passed the $700 billion Inflation Reduction Act (IRA) in a strictly party-line vote on Aug. 12, and it now awaits final approval from President Joe Biden.
The bill, which was negotiated chiefly by U.S. Sen. Joe Manchin (D-W.Va.) with Senate Majority Leader Chuck Schumer (D-N.Y.), was passed by the Senate on Aug. 7 via the reconciliation process, which overrides the 60-vote filibuster threshold for a simple majority.
Democrats have touted the bill, which they say will bring in $725 billion in new revenue to the federal government and reduce the deficit by around $292 billion annually.
“Rather than risking more inflation with trillions in new spending, this bill will cut the inflation taxes Americans are paying, lower the cost of health insurance and prescription drugs, and ensure our country invests in the energy security and climate change solutions we need to remain a global superpower through innovation rather than elimination,” Manchin said while announcing his support for the IRA on July 27.
However, opponents of the act argue that the IRA may further harm the economy.
Finance professor Michael Busler from Stockton University said in a recent interview with NTD that the U.S economy is currently in “stagflation” and as such, “the worst thing to be doing at this time when you have excess demand is to continue to government spend and add more excess demand.”
“That’ll make the inflation problem worse. Now, they’re gonna argue ‘We’re gonna raise taxes, so the inflation problem won’t be worse.’ All the tax increase will do is slow down the recovery,” Busler said.