Growingdemand for transport capacity is coming up against an almost exhaustedavailable offering. As a result, sea freight rates are climbing higher andhigher. A trend that could continue as the peak season kicks off.

Thererouting of ships from the Red Sea and congestion in the ports have led to ahuge increase in spot container prices since the beginning of May. There aremany indications that no improvement is in sight in the near future. Inaddition, more and more ship departures in Asia are being delayed. Averagetransit times are also increasing because the ports, particularly in China andSouth East Asia, are overloaded.

While it isdifficult to predict developments, spot container prices from Asia to Europeand the USA could soon reach USD 10,000 per 40-foot container. Although thecarriers are planning to increase capacity on the most important east-westroutes. But a lot will then depend on whether the increasing congestion in theports enables the shipping companies to keep to their planned schedules. Otherfactors influencing prices are possible strikes by port workers on the US Eastand Gulf coasts, further disruptions in the Red Sea and the threat of UStariffs on Chinese imports.

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