The Drewry World Container Index's spot rate for a 40-foot container from Shanghai to New York hit $9,387, more than double the rate from February. Industry experts attribute the rise to Yemen's Houthi rebels' attacks affecting Suez Canal routes.
Shortages and delays due to longer alternative routes around Africa have driven up shipping costs, impacting 80% of global trade. Retailers are importing goods earlier, causing rates to soar during busy seasons.
Experts predict the bubble will burst, with customers expecting prices to drop in the first half of the following year. Lack of transparency in pricing raises concerns and uncertainty among industry players.
Greg Davidson, CEO of Lalo, highlights the opaque nature of container shipping pricing, questioning the lack of clarity and rationale behind the current price surge.
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