Soaring Ocean Freight Rates Pose New Challenges for Global Trade

Ocean freight rates are on the rise again, with fears that they may exceed $20,000 per container, potentially reaching COVID-era peaks of $30,000, and remain elevated into 2025. Several factors are contributing to this surge, including a shortage of containers and limited vessel capacity, forcing shippers to rely on the spot market where prices are significantly higher. Additionally, extended dwell times at port terminals and scarce empty containers are exacerbating the situation.

The rising freight rates are putting pressure on global supply chains, with many shippers frustrated by the sharp increase in costs despite low demand and ample vessel capacity. In response, some companies are turning to air freight, which is also seeing a rise in demand and prices, as an alternative to ocean shipping.

Industry experts warn that the continued rise in spot rates will depend on shippers' willingness to pay these higher prices. This situation is creating significant challenges for global trade, with potential long-term impacts on goods prices and inflation​ (ITS Logistics)​​ (Hellenic Shipping News)​​ (Axxess International)​.