# Transportation inflation **URL:** \ **Category:** Macro Economic Trends and Risks\ **Created:** [June 14, 2024, 2:46pm UTC](https://discussion.fool.com/t/transportation-inflation/106141 "2024-06-14T14:46:45Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![DrBob2](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/drbob2/32/3456_2.png) [@DrBob2](https://discussion.fool.com/u/DrBob2)\ **Post date:** [June 14, 2024, 2:46pm UTC](https://discussion.fool.com/t/transportation-inflation/106141/1 "2024-06-14T14:46:45Z")
> **[Fears are rising ocean freight rates may surpass $20,000 with no relief for...](https://www.cnbc.com/2024/06/13/fears-rise-ocean-freight-rates-may-hit-20000-with-no-relief-in-sight.html)** > > Supply chain inflation, from ocean to air freight, is spiking again, and pricing volatility is all the talk among logistics companies involved in global trade. 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](https://www.cnbc.com/2024/05/23/a-sudden-container-crunch-is-sending-ocean-freight-rates-soaring.html) 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. DB2 ---
**Author:** ![jaagu](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jaagu/32/6160_2.png) [@jaagu](https://discussion.fool.com/u/jaagu)\ **Post date:** [June 16, 2024, 7:02pm UTC](https://discussion.fool.com/t/transportation-inflation/106141/2 "2024-06-16T19:02:31Z")
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](https://www.nytimes.com/2024/06/12/world/middleeast/yemen-houthis-red-sea-ship.html?smid=nytcore-ios-share&referringSource=articleShare&sgrp=c-cb) 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](https://fm.cnbc.com/applications/cnbc.com/resources/editorialfiles/2024/06/13/YEM_Houthi-Attacks-Pressuring-International-Trade.pdf), 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. [ocean](https://www.cnbc.com/2024/06/13/fears-rise-ocean-freight-rates-may-hit-20000-with-no-relief-in-sight.html) 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. ---
**Author:** ![PucksFool](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/pucksfool/32/47955_2.png) [@PucksFool](https://discussion.fool.com/u/PucksFool)\ **Post date:** [June 16, 2024, 8:19pm UTC](https://discussion.fool.com/t/transportation-inflation/106141/3 "2024-06-16T20:19:29Z")
This sounds like the new normal. Will these increased costs be used to justify added profits to middlemen and retailers bottom lines? In other words the old normal. ---
**Author:** ![steve203](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/steve203/32/3302_2.png) [@steve203](https://discussion.fool.com/u/steve203)\ **Post date:** [June 17, 2024, 1:32am UTC](https://discussion.fool.com/t/transportation-inflation/106141/4 "2024-06-17T01:32:57Z")
> [@PucksFool](#): > > This sounds like the new normal. 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? Steve ---
**Author:** ![Leap1](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/leap1/32/72176_2.png) [@Leap1](https://discussion.fool.com/u/Leap1)\ **Post date:** [June 17, 2024, 3:27am UTC](https://discussion.fool.com/t/transportation-inflation/106141/5 "2024-06-17T03:27:23Z")
Perceptions of Xmass around the corner. Might be interesting if Mexico is supplying many of the toys this Christmas. ---
**Author:** ![jaagu](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jaagu/32/6160_2.png) [@jaagu](https://discussion.fool.com/u/jaagu)\ **Post date:** [June 17, 2024, 7:06am UTC](https://discussion.fool.com/t/transportation-inflation/106141/6 "2024-06-17T07:06:36Z")
> [@steve203](#): > > 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? # 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. Among the most notable attacks, the Houthis [stormed and hijacked a vehicle-carrier, the Galaxy Leader, in November](https://www.theguardian.com/world/2023/nov/20/yemen-houthi-rebels-seize-cargo-ship-galaxy-leader-red-sea-israel), later opening it as a tourist attraction for propaganda purposes. In March, the Rubymar bulk carrier, carrying thousands of tonnes of fertiliser, [sank in the Red Sea after its hull was damaged in a Houthi missile strike](https://www.theguardian.com/world/2024/mar/05/sinking-of-rubymar-in-red-sea-poses-grave-environmental-risks-experts-warn). Intercargo, which represents dry cargo shipowners, urged states to enhance maritime security in the area. “We demand that all involved parties cease their deliberate and targeted attacks on innocent seafarers with immediate effect,” it said. > **[Houthi attack forces crew to abandon coal carrier in Red Sea](https://www.theguardian.com/world/article/2024/jun/15/houthi-attack-forces-crew-to-abandon-coal-carrier-in-red-sea)** > > The strike on Tutor from Yemeni militants left the vessel unable to manoeuvre, while one crew member remains missing ---
**Author:** ![steve203](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/steve203/32/3302_2.png) [@steve203](https://discussion.fool.com/u/steve203)\ **Post date:** [June 17, 2024, 2:14pm UTC](https://discussion.fool.com/t/transportation-inflation/106141/7 "2024-06-17T14:14:32Z")
> [@jaagu](#): > > Houthi attack forces crew to abandon coal carrier in Red Sea First I have heard of that one. Shiny media blathers endlessly about “Princess Kate”, but not a word about continuing attacks in the Red Sea. Steve