A perfect storm for container shipping
Will prolonged disruptions shift the pattern of trade?
A GIANT SHIP wedged across the Suez canal, record-breaking shipping rates, armadas of vessels waiting outside ports, covid-induced shutdowns: container shipping has rarely been as dramatic as it has in 2021. The average cost of shipping a standard large container (a 40-foot-equivalent unit, or FEU) has surpassed $10,000, some four times higher than a year ago (see chart). The spot price for sending such a box from Shanghai to New York, which in 2019 would have been around $2,500, is now nearer $15,000. Securing a late booking on the busiest route, from China to the west coast of America, could cost $20,000.
This article appeared in the Finance & economics section of the print edition under the headline “Perfect storm”
Finance & economics
September 18th 2021- A perfect storm for container shipping
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