Commodity prices to decrease in upcoming period — ACC

AMMAN — The prices of imported goods and commodities are expected to decline over the next couple of months, according to a representative of the Amman Chamber of Commerce (ACC).

“The prices are expected to decline because there is a significant decrease in sea freight costs for goods and commodities coming to the Kingdom from China and far East countries,” Nabil Al Khatib, ACC vice president, told The Jordan Times on Wednesday.

Khatib noted that about a week ago, the cost of a 40-foot container fell from around $10,000 to $7,500, pointing out that “sea freight costs have plummeted”. However, he added that the prices of raw materials have “skyrocketed” in the last period.  

Khatib noted that it will take almost two months to see the actual decrease in prices of imported goods and commodities, due to lengthy shipment times. 

He added that the efforts to reduce electricity usage and cut emissions in China have forced many industrial hubs to cut back production, or even some to temporary close. This has forced a slowdown in demand, thus bringing down the prices, according to Khatib. 

“The historically high freight cost crisis started in early 2020, but it deepened at the end of the same year,” he said.