Red Sea Conflict Drives Up Ocean Freight Rates

Continued geopolitical instability in the Red Sea has forced many global carriers to reroute shipments around the Cape of Good Hope, significantly increasing transit times and operational costs. As a result, ocean freight rates have doubled compared to late 2024 levels. If tensions ease, analysts project a 20–25% rate drop within months.

Impact: Increased cost of imported goods, delays in global supply chains.

Source: ShipUniverse (https://www.shipuniverse.com/news/global-freight-rates-and-market-trends-in-q1-2025/)