Container rates climb as logistic firms scale up Hormuz alternatives
The Drewry World Container Index measuring container shipping prices has soared by more than 40% since the start of the US-Israel-Iran war.
The global index for shipping container rates rose again this week as logistics companies expanded capacity on routes bypassing the Strait of Hormuz amid a standoff between Iran and the United States that failed to resolve.
What happened: The Drewry World Container Index increased 3% from last week to $2,800 per 40-foot container due to rate increases on the Asia-Europe and Transpacific trade routes spurred by the disruption in the Strait of Hormuz. The index has risen by more than 40% since the start of the war.
The rates have risen as Gulf countries and the shipping industry have had to reroute cargo away from the Gulf's main maritime gateway.
On May 24, Saudi Arabia’s ports authority, known as Mawani, launched new cargo shipping services connecting Saudi ports with Oman, Djibouti, Egypt and Jordan, according to Saudi state television.
