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Persistent supply-chain bottlenecks are driving up rates and the shipping sector sees no relief on the horizon before 2022.
Prices to ship containers from Asia to the U.S. and Europe are rising at a historic pace as cargo owners bid up rates in a search for ocean transportation capacity that shipping industry executives expect to remain tight for the rest of the year.
The average price world-wide to ship a 40-foot container has more than quadrupled from a year ago, to $8,399 as of July 1, according to a global pricing index by London-based Drewry Shipping Consultants Ltd. The measure has surged 53.5% since the first week of May.
The pricing surge has accelerated as events including the Suez Canal blockage in March and bottlenecks at gateways in Southern California and China’s Yantian port have tied up ships at sea for days and weeks at a time, with the backups rippling across supply chains and leaving containers in short supply.
Cargo Ship Logjam in Los Angeles
Source: The Wall Street Journal