Tiếng ViệtGlobal ocean container rates surged by an average of 61%, reaching $2,670 per 40-foot container—88% higher than pre-pandemic levels. The conflict in the Red Sea prompted major shipping companies to cancel transits, leading carriers to choose a longer route around Africa, adding up to 14 extra days to voyages. This redirection, coupled with reduced demand, resulted in a 20% capacity reduction, causing concerns about the potential impact on global trade and the eventual trickle-down of increased costs to consumers.
Ocean container rates experienced a significant surge this week, with an average increase of 61%, reaching $2,670 per 40-foot container. This surge has propelled the rates to an 88% higher level than their pre-pandemic levels.
Prices have surged across all shipping routes, particularly experiencing a substantial increase in rates to Europe. The route from Shanghai to Rotterdam in the Netherlands witnessed a remarkable rise of 115%, reaching $3,577, as reported by the shipping tracker Drewry. Additionally, rates from Shanghai to the U.S. increased by 30% to $2,726, and the route to New York saw a 26% surge, bringing the rates to $3,858.
The root cause behind the surge in ocean container rates is the intensification of conflict in the Red Sea. The situation escalated in the previous week, marked by a missile attack and an attempted hijacking of a Maersk vessel. Consequently, major global ocean shipping companies, such as Maersk and Germany’s Hapag-Lloyd, decided to cancel their initiatives to resume transits through the Red Sea.
In response to the challenges in the Red Sea, shipping carriers are choosing an alternative route by circumventing Africa through the Cape of Good Hope. However, this decision comes with a significant consequence, adding up to 14 extra days to a ship’s journey. Given that nearly 15% of the world’s maritime trade traverses through the Red Sea, it underscores the critical importance of this route for global trade.
Just recently, a collective warning was issued by the United States, Japan, and 10 other nations directed towards militants.
The nations jointly stated that the Houthis would be accountable for the potential consequences if they persist in threatening lives, disrupting the global economy, and obstructing the free flow of commerce in the vital waterways of the region.
During a recent press conference, White House spokesperson John Kirby mentioned that the surge in rates has not yet impacted American consumers.
The Red Sea serves as a vital waterway, facilitating a substantial portion of global trade. Redirecting nations to navigate around the Cape of Good Hope extends voyages by weeks, incurring substantial resources and expenses. This raises evident concerns about the potential repercussions for global trade.
The impact, according to him, hinges on the duration and escalation of the Houthis’ threat. John Kirby elaborated, “At present, we haven’t observed a noticeable increase or a direct impact on the U.S. economy. However, it’s crucial to acknowledge that this is a significant international waterway. Countries are increasingly recognizing the growing threat to the unimpeded flow of commerce.”
The conflict is aligned with a period of low demand, as reported by CNBC, leading to a prevalence of blank (or cancelled) sailings. Consequently, there is a 20% reduction in capacity, further contributing to the escalation of rates.
According to Alan Baer, CEO of shipping firm OL-USA, the increased costs are expected to eventually impact consumers as they trickle down through the supply chain.
It was emphasized that, based on lessons learned from the supply chain chaos of 2021–22, prices will be adjusted sooner rather than later by companies.
Source: furnituretoday.com
