Ocean Freight Rates Escalating Due To Red Sea Issues

In an immediate response to the developments in the Red Sea region, ocean freight rates appear to be escalating, with Asia origin spot rates already skyrocketing.

Additional transit times around Africa and extra fuel burned are amongst the issues cited by carriers for the upturn in rates, which were already subject to recent and upcoming General Rate Increases.

Some carriers have already announced that they will be implementing an Emergency Peak Season Surcharge, which seems to around $500 per TEU.

However, spot rates are perhaps providing us with a sign of times to come, as in many cases they have already doubled or more in a few short days this week.

With carriers blanking many voyages over recent months and vessels held in reserve, the longer transit times could now also lead to a squeeze on the currently available capacity.

The next few weeks look set for some disruption and perhaps further escalation of rates. The team at Croft are monitoring the situation closely, although if you have concerns about any urgent shipments, then please do not hesitate to contact us.

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