UNCTAD: Red Sea, Black Sea and Panama Canal crises to impact costs, inflation and climate

Prolong disruptions to container shipping caused by the crises in the Red Sea and Panama Canal will potentially delay deliveries, cause higher costs and inflation, and increase greenhouse gas (GHG) emissions, according to a report into the impact of global trade by the UN Conference on Trade and Development (UNCTAD).

Container freight rates have more than tripled since November 2023, with the rates from Shanghai to Europe up by 256%, while average spot rates from Shanghai have more than doubled since early December, up 122%.

The peak rate of this period so far was US$2,239/teu, recorded on January 19, 2024, but still well below the US$5,000 high achieved in January 2021.