International container shipping is entering another period of rapidly increasing costs. Over the past week, freight rates from China have risen significantly across several key trade routes, while global logistics companies continue warning customers about possible further price increases in the coming months.
Fresh data from the Shanghai Containerized Freight Index (SCFI), considered one of the main indicators of global ocean freight pricing, confirms the growing pressure on the market. According to the latest report from the Shanghai Shipping Exchange, the index jumped by 15.9% in a single week, reaching 2571.73 points. This marks the highest level since September 2024.
For comparison, the previous week showed growth of only 3.6%, highlighting how quickly shipping costs are accelerating again.
The Red Sea Crisis Continues to Impact Global Logistics
The main driver behind rising freight rates remains the ongoing instability in the Red Sea and the broader Middle East region. Following the escalation surrounding Iran at the end of February, international shipping companies once again began restructuring vessel routes on a large scale.
Before the latest wave of tensions, the SCFI stood at approximately 1333 points. However, within just a few months, the market saw a dramatic increase in shipping prices.
The core issue remains maritime security in the Red Sea and along the Suez Canal route. Many of the world’s largest container carriers continue avoiding this corridor and are rerouting vessels around the Cape of Good Hope instead.
This alternative route is significantly longer and more expensive. It increases transit times, fuel consumption, fleet utilization and overall operational costs for carriers. As a result, these additional expenses are directly reflected in freight rates.
Shipping Costs Are Rising Across Nearly All Major Routes
Market analysts report that freight prices are now increasing across almost all major global trade corridors. Particularly strong growth has been recorded on routes between Asia and Europe, as well as services to the Mediterranean and Northern Europe.
The situation is further intensified by the peak shipping season. Many importers are increasing purchases and building inventories in advance due to concerns about ongoing geopolitical uncertainty and potential future supply chain disruptions.
Another important factor is the limited availability of container vessel capacity. Because ships are spending more time on longer routes, the number of available shipping slots on the market is shrinking.
At the same time, marine insurance costs continue rising for vessels operating near high-risk areas. In some cases, insurance premiums have increased several times compared to pre-crisis levels.
The Market Has Not Yet Reached Pandemic-Era Peaks, but Pressure Is Growing
Experts emphasize that current freight rates still remain below the extreme levels seen during the COVID-19 pandemic, when global logistics experienced its largest crisis in decades.
The historical peak of the SCFI was recorded in January 2022 at 5109.60 points. By comparison, the index reached its recent low in October 2023, when it dropped below 932 points.
Nevertheless, the current market dynamics once again demonstrate how sensitive global container shipping remains to geopolitical crises and disruptions in international trade routes.
A similar trend is visible in the World Container Index (WCI), calculated by analytics company Drewry. For the week ending May 28, the WCI increased by another 3.2%, reaching $2799.55 per 40-foot container.
This means global container freight rates have now been rising for four consecutive weeks.
What Rising Freight Costs Mean for Importers and Exporters
For businesses, higher ocean freight prices mean further growth in logistics expenses. Companies dealing with electronics, industrial equipment, consumer goods, household appliances and mass-market products remain especially vulnerable to increasing shipping costs.
These additional expenses are gradually being reflected in the final prices of goods, particularly in trade flows between Asia and Europe.
Logistics companies are already advising customers to plan shipments earlier, secure container capacity in advance and prepare for potential delivery delays when managing supply chains.
Global Container Shipping Is Entering Another Period of Volatility
Market analysts believe freight rates are likely to remain elevated in the coming months. Ongoing instability in the Red Sea, limited vessel availability and strong shipping demand continue to keep the market under pressure.
For the global logistics industry, this signals a return to heightened volatility, where freight costs may fluctuate sharply even in response to individual geopolitical developments.
Amid continued uncertainty, international carriers, exporters and importers are being forced to adapt to rapidly changing conditions in global trade, where flexibility and fast logistical decision-making are becoming increasingly important competitive advantages.
