By Jennifer Chang.    Photo：Jenna Hamra

The international transport industry including sea, air and land transport, is one of the most important pillars of the global economy. However, with the emergence of COVID-19, the global supply chain collapsed, affecting many industries and causing inflation rates to soar in various industries. The international transportation industry is no exception, and the impact of inflation is particularly evident. The impact of inflation on the shipping industry is reflected in many aspects, most notably the increase in fuel costs. In addition, transportation costs, labor costs, increased equipment costs and storage costs have all increased significantly. This has led to a decrease in shipping volume for shipping companies, resulting in a reduction in demand for goods and services. However, as COVID recedes and the world economy gradually recovers, the pressure of inflation continues to persist without easing.

Inflation is a prolonged period of rising prices, resulting in a decrease in the purchasing power of money. This situation has direct and indirect effects on the logistics industry. First, inflation usually leads to higher costs for the logistics industry. Since the logistics industry has to pay for various costs such as freight, warehousing and personnel, these rising costs will directly affect the operation of the logistics industry, which in turn affects the cost of living of consumers. In order to cope with the increased cost of transporting goods due to inflation, the logistics industry may raise the prices of logistics and services to balance costs and revenues. Second, inflation will also have an indirect impact on the supply and demand relationship, which in turn will affect the operations of the logistics industry. In an inflationary situation, consumers' purchasing power becomes weaker and the demand for products may decrease. In such a situation, the logistics industry will receive fewer orders, resulting in a reduction in shipping volume. At the same time, inflation may also affect the operating costs of enterprises, leading them to reduce their transportation needs, which in turn affects the operation of the logistics industry. Therefore, inflation is a complex balancing game for the logistics
industry. As a logistics industry, we need to pay close attention to the development trend of inflation and adjust our strategy in time to cope with the changing market environment and improve our competitiveness, so as to reduce costs and improve efficiency within our control and achieve sustainable development.

For most businesses, the world's stagnation has been challenging enough, as the chain reaction to the outbreak continues to take its toll even after the global blockade has ended.COVID-19 has wreaked havoc on the natural rhythms of global trade, pushing back seasonal demand peaks for months. After the lift of pandemic restriction in China, the economy began to recover, driving
the need for increasing of goods in supply chain around Asian market, also driving the demand for transport.  After a miserable and miserable first quarter, global container ships have recently received notices of upcoming GRI (General Rate Increase) increases from shipping companies. The world is
waiting with bated breath for when freight rates will rebound, and shipping companies are beginning to declare their determination that freight rates cannot go any lower, and that they should return to a reasonable level.

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