BOAT - International Shipping Rates Headed Up Long Term

2024-07-12 05:30:00 ET

Summary

• International shipping costs have risen over the past 18 months for many types of products.
• The near-term outlook for rates is favorable for shippers, but longer-term trends not so much.
• Outside of shipping, new goals and standards to reduce global warming have been relaxed or delayed as the costs became clearer.

International shipping costs have risen over the past 18 months for many types of products. This contrasts with the decades-long era of declining inflation-adjusted costs. The most recent run-up was influenced by Houthi attacks on ships in the Red Sea, leading most vessels to take the longer Cape of Good Hope route between east Asia and Europe. The Red Sea problem followed low water in the Panama Canal system, which reduced the number of transits and led some ships to longer alternative routes....

For further details see: