THE cost to ship a standard FEU of toys, auto parts, or other goods from Shanghai to New York has surged to US$10,000, causing frustration among importers and leading some experts to suggest that the market is in a bubble, reports Reuters.
The Drewry World Container Index's spot rate for such shipments reached $9,387 on July 11, more than double the rate from February.
However, this is still below the Covid crisis peak of $16,000, which was driven by spree buying from homebound consumers.
Industry experts largely attribute the increase in off-contract shipping prices to missile and drone attacks by Yemen's Houthi rebels, which have forced ships to avoid the Suez Canal trade shortcut.
The alternative route around Africa takes longer, requiring more ships to move the same amount of cargo.
This results in shortages, schedule disruptions, and delays, driving up costs for sea transport, which handles about 80 per cent of international trade volume.
SeaNews Turkey
The Drewry World Container Index's spot rate for such shipments reached $9,387 on July 11, more than double the rate from February.
However, this is still below the Covid crisis peak of $16,000, which was driven by spree buying from homebound consumers.
Industry experts largely attribute the increase in off-contract shipping prices to missile and drone attacks by Yemen's Houthi rebels, which have forced ships to avoid the Suez Canal trade shortcut.
The alternative route around Africa takes longer, requiring more ships to move the same amount of cargo.
This results in shortages, schedule disruptions, and delays, driving up costs for sea transport, which handles about 80 per cent of international trade volume.
SeaNews Turkey
