Container shipping rates on major global trade routes surged this week as US and British airstrikes on Yemen heightened fears of a prolonged disruption of global trade on the Red Sea, one of the world’s busiest shipping lanes, industry officials said Friday.
Many container ships were already avoiding the nearby Suez Canal, which is the shortest route between Asia and Europe and through which 12% of world trade passes.
Now, the US and UK militaries have advised all ships to stay away from the conflict zone.
That has raised fears that rates for oil tankers and bulk carriers transporting vital commodities could rise sharply, raising the risk of a new round of global inflation.
Transit rates for the shortest route from China to Europe have soared to about $3,100 per container.
The Shanghai Containerized Freight Index (SCFI), a trade index that reflects transportation costs, has already risen by 310% since November 2023.