The rate of inflation is easing in the developed world except for one area where prices are soaring: the cost of shipping goods on the high seas.
The Drewry World Container Index released on Thursday shows that spot rates for full-size container shipping to the US and Europe have risen again. Three key routes are all above $6,000 for a unit of 40 feet. The spot rates for full-size a data-ga-onclick=”Inarticle articleshow link click#Small Biz#href” href=”https://economictimes.indiatimes.com/topic/shipping” target=”_blank”>shipping/a> containers to the US and Europe from Asia rose again in the most recent data, with three key routes all topping $6,000 for equivalence 40 foot units.
Nearly six months of regular attacks against vessels in the
Red Sea
The industry responsible for about 80% of international goods traffic has been stretched to its capacity, causing disruptions and bottlenecks at some of Asia’s largest ports.
Singapore’s maritime hub, one of the world’s major crossroads for seaborne cargo, has been experiencing a prolonged period of congestion. According to industry estimates the waiting time to get a berth in Singapore is now nearing five full days. In Chinese ports Ningbo Shanghai and Qingdao, it is between one and four days.
Demand for goods, especially in the US, is strong. Imports in the Port of Los Angeles – the busiest seaport of the US – remained above pre-pandemic levels in the first five month of 2024, despite a slight decline in May.
Drewry reports that the cost to ship a 40-foot container from Shanghai to Los Angeles last week increased by 0.8%, to $6,025. This was the sixth consecutive week of gains. The charge from Shanghai to Rotterdam rose 2.4% to $6.177, the highest since September 2022.
Mediterranean Sea
Drewry reports that the rate has risen by 3%, to $6.862. This is the highest since September 2022. This was the highest rate since September 2022. Drewry said that it “expects freight rates from China to continue to increase next week due congestion issues in Asian ports.”