24 June 2024
Ocean shipping prices are surging towards pandemic-era highs due to a combination of factors, including vessel diversions around the Red Sea, port congestion, and the approaching peak shipping season. The Houthi rebel attacks in the Red Sea have effectively closed the Suez Canal since late last year, causing disruptions that extend voyage times and strand containers at ports worldwide. This has led to growing ship backups off the coasts of several Asian countries and in European ports. The average global cost of shipping a 40-foot container has more than tripled since last June, reaching $4,119 in mid-June 2024. While not yet at pandemic peak levels, rates from Asia to the U.S. East Coast have doubled from normal levels, causing concern among importers and exporters about potential further increases as demand picks up in the coming months.