Shipping Rates Are Soaring. Will They Refuel Inflation?

Sending goods around the world by ship is at least five times as expensive as it was last year, putting new cost pressures on companies and raising the specter of prolonged inflation. Container ship rates from Asia to Europe have jumped to about $8,000 per 40-foot shipping container, up from an average of $1,500 last year, according to Jefferies analyst Omar Nokta. Geopolitical tension is the biggest reason—the Houthi faction in Yemen continues to attack ships in the Red Sea in protest of Israel’s war in Gaza, despite efforts by the U.S. and others to stop the attacks.