SHARM EL SHEIKH, EGYPT – APRIL 5, 2018 : Red sea, a large cargo ship sails on the sea. High quality photo
New data shows that freight rates for ocean carriers have risen significantly since the start of May.
According to Freightos, ex-Asia rates have increased by around $1,000 per 40-foot-equivalent units (FEU) since the end of April, climbing to $4,/FEU for routes to the U.S. West Coast and Northern Europe, as well as $5,000 to the Mediterranean and $5,/FEU to the East Coast.
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Freightos attributes this to ongoing issues in the Red Sea, where Houthi rebel attacks on vessels have continued to force carriers to reroute ships thousands of miles around Africa’s Cape of Good Hope. Those disruptions have led to tighter capacity on the larger shipping network, even affecting rates on lanes that don’t move through the Suez Canal.
Meanwhile, air freight rates have dipped across the board as shippers have made adjustments to account for Red Sea diversions. Since the start of May, China to North America prices have dropped 4%, China to Northern Europe prices have dipped by 7%, and Northern Europe to North America prices have fallen by 2%.
