New data shows that freight rates for ocean carriers have risen significantly since the start of May. 

According to Freightos, ex-Asia rates have increased by around $1,000 per 40-foot-equivalent units (FEU) since the end of April, climbing to $4,000/FEU for routes to the U.S. West Coast and Northern Europe, as well as $5,000 to the Mediterranean and $5,400/FEU to the East Coast. 

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Freightos attributes this to ongoing issues in the Red Sea, where Houthi rebel attacks on vessels have continued to force carriers to reroute ships thousands of miles around Africa's Cape of Good Hope. Those disruptions have led to tighter capacity on the larger shipping network, even affecting rates on lanes that don't move through the Suez Canal. 

Meanwhile, air freight rates have dipped in several regions – since the start of May, China to North America prices have dropped 4%, China to Northern Europe prices have dipped by 7%, and Northern Europe to North America prices have fallen by 2%. Even so, rates out of the Middle East and Southeast Asia have remained elevated amid high demand from shippers who have shifted to air freight rather than opting for the lengthy diversion away from the Red Sea. 

This is after the world's second largest ocean carrier Maersk warned on May 6 that the risk zone in the Red Sea has expanded, projecting an industry-wide capacity loss of 15-20% for the Far East to North Europe and the Mediterranean market by the end of Q2 of 2024. The company expects disruptions from the crisis to persist through most of the year.