Surging Ocean Freight Rates Amidst Panama Canal And Red Sea Disruptions

Disruptions in key trade routes are driving a surge in ocean freight rates, with the global average container rate surpassing $3,000 per 40-foot container.
Two major trade routes—Panama Canal for U.S.-Asia trade and the Red Sea/Suez Canal for Europe-East Africa/South Asia trade—are facing significant disruptions, impacting shipping patterns and increasing costs.

Panama Canal Constraints

Since late 2023, the Panama Canal has experienced disruptions due to an extended drought, reducing the number...