The cost of freight shipping has risen to its highest since the Red Sea crisis two years ago as businesses rush to stockpile inventory ahead of a fresh round of US tariffs.
Rates on routes between Asia and the US east coast, and Asia and Europe, last week hit their most expensive levels since the summer of 2024 when the crucial trade artery was in effect closed after a series of missile and drone attacks on merchant ships by Houthi rebels in Yemen.
Executives said anticipation of new US tariffs next month had brought forward the annual increase in shipping demand that usually starts as retailers filled inventories before the Black Friday and Christmas shopping periods.
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