Compared to late last year, when Houthi rebels began targeting boats in the Red Sea to stop ships from docking in and exporting from Israel, the cost of shipping a standard container on a major shipping route has increased.
According to information provided to News by the international logistics business DSV, the Shanghai Containerized Freight Index (SCFI) has increased significantly over the past month.
At $4,252 (£3,341) per container, the cost has never been higher since the early days of September 2022, when global supply systems were beginning to recover from the Suez Canal bottleneck.
Ever Given’s container ship ran aground in Suez in 2021, obstructing the critical shipping route and causing havoc at ports and supply lines. This event precipitated a sharp increase in shipping expenses.
This wave of supply chain issues was partly responsible for the initial economic shock that accelerated the rate of price increases, or inflation.
The economy has mostly recovered from shocks, such as the increases in energy prices brought on by Russia’s invasion of Ukraine, which in October 2022 caused inflation to spike to a 41-year high of 11.1%.
Even while inflation has decreased dramatically—to 2.3% according to the most recent reading—expensive shipping might raise the rate.
