Geopolitical pressure on shipping rates
Posted: Jul 03, 2024
- Red Sea shipping issues are worsening, leading to increased costs and a shift to air freight - China to North America air freight rates up 43% to $4.88 per kilogram in May - Global air cargo spot rates up 9% in May to $2.58 per kg - Increased demand driving growth in air freight market - Inflationary pressures impacting shipping costs and insurance rates - Rising costs may be passed on to consumers or result in losses for companies - Uncertainty around shipping issues makes it difficult for Powell to cut rates- Rising ocean freight rates are causing fears of surpassing $20,000 with no relief for global trade into 2025 - This could have significant impact on companies reliant on global supply chains - Companies may need to factor in increased costs for shipping goods - The situation is expected to continue without any immediate relief or decrease in rates
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