Press Release: Soaring Ocean Freight Costs from Late May to June Challenge Global Supply Chains

Headline: Ocean Freight Rates Skyrocket from Late May to June Amid Red Sea Crisis and Peak Season Demand

Global shipping markets are experiencing a sharp surge in container rates since late May. Prices on major Asia-Europe and Asia-US routes have risen over 50% year-to-date, with some lanes doubling, driven by a perfect storm of factors expected to persist through June.

Key Drivers:

Red Sea Disruptions: Houthi attacks force 15% of vessels to reroute via Cape of Good Hope, extending transit times by 2-3 weeks.

Peak Season Rush: Pre-holiday stockpiling for Black Friday/Christmas and China’s 618 shopping festival strain capacity.

Port Congestion: Singapore and Rotterdam face severe delays, while container imbalances reduce equipment availability.

Bunker Surcharges: Rising oil prices trigger carriers like Maersk to impose new BAF fees.

Industry Responses:

Shippers: Adopt rail-air hybrids or book 4-6 weeks ahead; negotiate long-term contracts.

Carriers: MSC and CMA CGM announce June PSS surcharges while deploying extra loaders.

Governments: China urges global cooperation, with some exporters receiving freight subsidies.

Outlook: Analysts warn of sustained high rates in Q3 if Red Sea risks remain. Recommendations include diversified logistics strategies and dynamic inventory planning.