Shipping container freight rates are soaring in light of the unrest in the Red Sea.
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Container monitor Container xChange said shipping container lease rates on the critical China-US route had increased threefold in recent months, as the instability caused by Houthi rebels along the Yemen coast of the Red Sea continued to take its toll.
While prices have risen on both the west coast and east coast markets, the east coast prices have risen the most.
The Ningbo - New York container leasing rates rise by as much as 223pc since November, up from from $US535 to $US1730 now.
With the US economy showing signs of recovery according to Container xChange there will be continuing demand for containers, meaning that prices could rise further still.
This has the potential to be bad news for Australian grain exporters servicing the container market.
When supply contracts, containers tend to be priced into the major trade routes, such as China to the US or China-Europe, meaning Australian container supplies can be restricted.
Volumes of containers heading to the US are already up.
According to the Port of Los Angeles' PortOptimizer, Week 6 twenty foot equivalent (TEU) container volumes were up 38.6pc
compared to the same week in 2023.