The sea freight price index experienced a 16% rise last week, pushing the cost to $4,072 per container, an impressive 142% increase from the same period last year.

This price hike is attributed to a significant increase in demand for maritime transport over the past three weeks. This coincides with an increase in blank sailings by several shipping lines and operational disruptions caused by adverse weather conditions in Asia.

Data highlights notable increases in shipping rates across major routes:

- Shanghai to Rotterdam rates rose by 20%, reaching $4,999 per container.

- Shanghai to Los Angeles saw an 18% increase, with rates climbing to $5,277 per unit.

- Rates from Shanghai to Genoa increased by 15%, settling at $5,494 per container.

- Shanghai to New York rates went up by 13%, reaching $6,463 per container.

In contrast, Atlantic shipping rates showed minor fluctuations:

- Rates to New York from Rotterdam increased slightly by 1% to $2,241 per container.

- Rates from Rotterdam to Shanghai dropped by 1% to $673 per container.

- Rates between Los Angeles to Shanghai and New York to Rotterdam remained stable.

Despite the delivery of one million twenty-foot equivalent units (TEU) each month, the report suggests that such supply is unlikely to keep pace with rising demands. There's uncertainty regarding whether the current increase in shipments is merely a restocking effort or an early surge anticipating peak season, as some analysts propose.

The report also highlights the challenges at Asian ports, which are ill-prepared for the surge. The irregular arrivals due to empty sailings and a shortage of vessels needed for rerouting around the Cape of Good Hope have compounded operational difficulties at these ports.

Furthermore, during the first four months of the year, the market remained stable despite an additional influx of 1 million TEU. However, a significant capacity shortage has now emerged, seemingly overnight. Some importers, aiming to build safe buffer stocks amid delays and disruptions reminiscent of those experienced during the COVID-19 pandemic, face new challenges. Slow container returns to Asia are creating additional bottlenecks, exacerbating the logistical constraints.