Businesses worldwide are facing a sustained increase in costs as global shipping firms implement steep price hikes to counteract a mounting fuel crisis triggered by the US-Israel war on Iran. According to a report from the South China Morning Post, shipping lines have stated they have no alternative but to pass on these higher expenses, with the fuel disruption potentially lasting well into next year.

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In Shanghai, one of the world’s busiest ports, the cost of shipping a container has surged dramatically since the conflict began. The Shanghai Containerised Freight Index, which tracks spot rates across 13 global trade routes, nearly doubled from 1,333.11 points at the end of February to 2,571.73 points recently. This means prices have risen from roughly 1.3 times the 2009 benchmark level to more than 2.5 times that level.

A similar upward trend is evident in another key benchmark: Drewry’s World Container Index, which monitors freight rates on East-West sailing routes. According to Drewry data released on Thursday, spot rates have climbed for four consecutive weeks and now stand at US$2,800 per 40-foot container, up from US$1,899 in late February. Drewry expects prices to rise further in the coming weeks, as the early peak season for global shipping approaches and the fuel crisis continues with no resolution in sight.

Source: IndexBox Market Intelligence Platform