Spot freight rates from China to Northern Europe have surged to $2,020 per 20ft container — up 70% since early May — driven by seasonal demand and heavy port congestion. Although Red Sea rerouting continues to support prices by limiting capacity, analysts expect spot rates to decline later in 2025 as new vessels enter the market and demand softens

The Red Sea crisis triggered a big rerouting of global shipping around Africa, slashing Saudi Arabia’s Red Sea port volumes. King Abdullah Port volumes fell 83% in 2024, Jeddah fell 33%, while Dammam surged 43% as traffic shifted to the Middle East Gulf. Feeder ships replaced mega-vessels in the Red Sea to ensure regional cargo coverage was maintained, but renewed conflict keeps risk levels high and recovery uncertain

Container shipping is expected to grow 3%-4% in 2025, but headwinds loom. US imports will likely drop in the second half of the year because of tariffs and weaker economic growth, while Europe and the Mediterranean offer bright spots. Overcapacity, Middle East tensions and supply-demand imbalance keep the sector’s outlook subdued

Despite growing security concerns linked to Israel’s confrontation with Iran, major container lines have continued to call at Israeli ports, though several global carriers are scaling back frequencies and tightening operational protocols

With the Israel-Iran conflict raising the possibility of the Strait of Hormuz’s closure, analysts warn of cascading disruptions to regional port connectivity and global logistics flows already strained by Red Sea turmoil and a potential trade cut off for Middle East Gulf hubs

Asia-Europe spot rates hit four-month highs amid a prolonged period of congestion that is keeping prices elevated. Forecasts for rates to come down in the coming week could prove to be premature, as potential rise in bunker costs due to rising Israel-Iran tensions could see more surcharges for shippers