In recent months, shipping costs for goods from Chinese ports and countries in the Far East have decreased due to a global decline in shipping demand, an increase in the number of new and large commercial vessels operating in maritime transport, along with the repercussions of the COVID-19 pandemic and the Russia-Ukraine crisis. For example, the cost of shipping a 40-foot container from a port in China to Beirut fell from $14,000 at the onset of the pandemic and lockdown measures to around $8,000. Likewise, the cost for a 20-foot container dropped from $6,000 to under $3,000. Consequently, the decline in shipping costs should be positive for citizens in general, as imported goods from China are expected to decrease significantly; it is worth noting that the value of imports from China in 2019 was approximately $1.6 billion.
However, do maritime calculations align with those in stores? Economic expert Jassem Ajaka, speaking to "Akhbar Al-Youm", ruled out any decrease in prices. He pointed out that the price of crude oil globally had dropped over $10 in recent days and returned to a level similar to that at the beginning of the year, but fuel prices in Lebanon did not decrease at the same rate, possibly due to the rising dollar exchange rate. He suggested that this would also apply to shipping costs to Lebanon, which have significantly decreased by about 60%. This percentage could cover the increase in the customs dollar to 15,000 if handled transparently.
Ajaka emphasized that there is no justification for rising prices and they should actually decrease. He mentioned other reasons that merchants might use to justify price increases or at least maintaining the current prices, including higher insurance costs due to increased risks for ships heading to Lebanon. However, he deemed this excuse weak and inconsistent with the significant decrease in shipping costs, explaining that insurance is calculated for an entire ship, not for each individual container. Most vessels transporting goods to Lebanon are large, which reduces the insurance cost per container.
Here, Ajaka argued that it is necessary to return to the Ministry of Economy, specifically the Consumer Protection Directorate, questioning whether the Consumer Protection Directorate could fulfill its duties at this level. He added that this may be unlikely for several reasons, primarily the lack of sufficient financial resources for inspectors to perform their tasks, and that those who should be "raided" are influential figures, giving them the power to obstruct any action.
In response to a question, Ajaka explained that in the general concept of the economy, imports represent openness and human development; however, in Lebanon, it has become a blow to the economy as it has transformed into a process of impoverishing the people, completely contradicting development due to the extensive corruption accompanying it. He concluded that if intentions were genuine and the industrial sector was organized professionally, there would not be all these problems.
