Container Prices Increase

Something to keep an eye on...

Drewry’s World Container Index increased by 61% to $2,670 per 40ft container this week, putting container prices 88% above the pre-pandemic average.

While a lot of this is driven by the recent instability in the Middle East and in particular the Red Sea becoming less safe for shipping, the ongoing drought in Panama is also having an impact.

Both of these issues are likely to persist for some time, forcing ships to take longer routes and lowering the overall shipping capacity in the global market.

I don't see this having a huge impact at the moment, but it could get a lot worse if the situation deteriorates in the Middle East and Panama guess less rain than anticipated, leading to another supply chain crunch.