Container rates soar as Red Sea chaos worsens capacity crunch

Container shipping rates from Asia to Europe rose for a seventh straight week, reflecting tighter capacity as more vessels avoid the threat of attacks in the Red Sea and take the long way around southern Africa.

The spot rate for a 40-foot container going from Shanghai to Genoa, Italy, in the Mediterranean jumped by more than $1,000 to $6,282, according to the Drewry World Container Index released Thursday. Seven weeks of gains is the longest advance since the pandemic in 2021.

The latest charge for Shanghai to Rotterdam rose 12% to $4,951, the highest since September 2022.

The shipping diversions are affecting the transportation of Asian goods to the US, too. Among east-west trade lanes, the biggest weekly increase in percentage terms was Shanghai to Los Angeles, which surged 38% to $3,860.