Shipping costs rise after a 16-month nosedive.

Spot rates for containers rose to the highest in more than two years, marking the end of a 16-month nosedive in ocean freight costs that helped ease a spike in goods inflation.

As a clear example, shipping costs from Shanghai to Los Angeles reached $2,322 USD per 40-foot container, an increase of 11.3% compared to the previous week, also being the fifth consecutive week with a cost increase.

Containers have returned to pre-COVID-19 levels, though the problem of bloated inventories and subdued consumer spending remains. Recall when the pandemic led to the clogging of logistics networks, thus loading consumers with household items, causing rates to increase tenfold to record levels.

Last week, the French shipping company CMA CGM presented a negative outlook for the industry, especially on the more established trade routes. East-West shipping routes are falling faster than North-South trade which seems to have a more dynamic picture.

Rates can be expected to continue to rise, although not to levels equal to during the pandemic, especially as there is over-saturation in the disposable equipment industry. This is taking into account that shipping companies such as MSC have added larger tonnage ships to their fleet, as well as more containers, creating an effect of more supply than demand.