FREIGHT rates for Chinese container exports have soared recently, driven by robust overseas demand and the escalating crisis in the Red Sea, reports Caixin.

The Shanghai Containerized Freight Index, reflecting changes in spot freight rates from Shanghai, reached 2,305.79, up nearly 19 per cent since the end of April, the highest since September 2022.

Shipping costs to Europe and South America have significantly increased, with rates up around 25 per cent to Europe and 22 per cent to South America.

These spikes are exacerbated by disruptions in global trade, navigation restrictions, and geopolitical tensions, including attacks by Yemen's Houthi rebels on ships in the Red Sea.

The ongoing conflict has led to increased security measures and operational changes, such as rerouting vessels around the Cape of Good Hope, further contributing to rising shipping costs.