Spot ocean freight rates from the Far East to the U.S. popped between 36%-41% month over month, and ocean carriers increased additional charges known as general rate increases by roughly 140%, according to the CNBC Supply Chain Heat Map. These costs have taken the price of a 40-foot cargo container to about $12,000…
A lack of containers and limited vessel capacity overseas has forced shippers to move to the spot market to find equipment to load out at origin. “That is significantly driving rates to levels not seen since the post-Covid crisis two years ago,” he said. Freight is also bottlenecked at port terminals due to extended dwell times and empty containers to load with goods are very scarce, Brashier added…
Niall van de Wouw, Xeneta chief airfreight officer, told CNBC that air cargo spot rates from China to the U.S. have surged in 2024, primarily due to the extraordinary boom in e-commerce demand through companies such as Shein and Temu. “We may also be seeing some impact on air freight due to disruption in ocean container services,” said van de Wouw.
On Thursday, Sea-Intelligence issued a note forecasting that Asia-Europe spot prices could exceed $20,000, with the Red Sea crisis — the Houthi rebels have been stepping up attacks on ships recently — and the increase in nautical miles traveled need to be factored in.
According to the Defense Intelligence Agency’s report on the economic impact of the Houthis’ Red Sea attacks, container shipping through Red Sea had declined by approximately 90% between December 2023 and mid-February. Alternate shipping routes around Africa not only add about 11,000 nautical miles (one to two weeks of transit time), but also add an approximate $1 million in fuel costs for each voyage.
No end in sight for the Israel attaks on Gaza, thus no end in sight for stopping the Houthi Red Sea attacks on shipping. Netanyahu wants to keep the Gaza war going to stay out of jail, and he hopes that Trump wins in November.
Interestingly, I have not heard the USian media chirping about interference with Red Sea trade in a few weeks. So, are they trying to pretend it doesn’t exist? Have raids on commercial traffic been normalized?
Houthi attack forces crew to abandon coal carrier in Red Sea
15 June 2024
The crew of a Greek-owned vessel damaged in an attack by Yemen’s Houthi militants has been evacuated and the abandoned ship is drifting in the Red Sea, according to the UK Maritime Trade Operations (UKMTO).
The Houthis’ air and sea campaign has disrupted global shipping, causing delays and costs to cascade through supply chains. At least 65 countries and major energy and shipping companies – including Shell, BP, Maersk and Cosco – have been affected, according to a report from US intelligence.