Global Shipping Costs Hit Highest Level Since Red Sea Blockade

By Staff, Agencies

Global freight shipping costs have surged to their highest level since Yemen imposed its Red Sea blockade on “Israeli”-linked shipping, according to a report by the Financial Times, as businesses accelerate imports ahead of a new round of US tariffs set to take effect next month.

The increase has been driven by importers bringing forward shipments that would normally be spread across the summer and early autumn, when retailers typically build inventories for Black Friday and the Christmas season.

Companies are seeking to avoid the impact of Washington’s upcoming trade measures, resulting in increased demand for cargo space on major shipping routes between Asia, the United States, and Europe.

According to data from Freightos, the cost of shipping a 40-foot container from China to the US East Coast climbed to $7,880 last week, representing a 62% increase compared with the previous month.

Shipping rates from China to the Mediterranean also recorded a significant rise, increasing 47% to $6,431 over the same period.

Meanwhile, the Platts Container Index rose 80% during the month leading up to Wednesday, reaching its highest level since April 2022, reflecting mounting pressure on global shipping markets.