From CNBC:

Following attacks on ships in the Red Sea, ocean freight rates are rising significantly, leading to warnings of inflation and delayed goods. Due to diversions around the Suez Canal, freight rates are increasing daily, shipping times are longer, and there is a threat of delays for spring and summer products in China. The violence against commercial ships has prompted a stern warning from the US, Japan, and other nations.

This persistent violence has led to a significant drop in manufacturing orders, leaving about 20% of vessel capacity unused. As a result, ocean carriers are increasing their rates, with some carriers announcing rates above $6,000 per 40-foot container for Mediterranean shipments starting mid-month, along with surcharges ranging from $500 to $2,700 per container.

Diversions from the Suez Canal are hurting capacity, adding two to four weeks to round-trip voyages, reducing effective global container shipping capacity by 10%-15%. The longer routes could also delay the arrival of spring goods traditionally picked up before the Chinese Lunar New Year, set for February. North American East Coast ports are “losing” several calls, which are being pushed into January.

As a result of the longer travel time and late arrivals, ocean carriers are expanding land freight services for those using West Coast ports instead of the East Coast. This diversion in trade will create opportunities for West Coast railroad and trucking companies, with a forecasted increase in activity as the Lunar New Year peak season approaches.



Read more: Red Sea crisis fuels shipping costs, delays, inflation