Freight shipping costs have soared to their highest level in two years, as companies race to build up their inventory before the United States imposes new tariffs, according to a report by the Financial Times.
The price of a 40-foot equivalent unit between China and the U.S. East Coast rose by 62% month on month to reach $7,880 (£5953.77) in June, while rates between China and the Mediterranean increased by 47% to $6,431 (£4858.97), according to data from online freight shipping marketplace Freightos. These rates are the highest since the summer of 2024.
The Platts Container Index, a measurement of rates for shipping ocean containers across key global trade routes, rose 80% within a month and reached its highest level since April 2022. The Financial Times report attributed these increases to expectations that the U.S. will impose new tariffs and that fuel prices will continue to rise over the summer. As companies sprint to beat these increases, the shipping demand that typically skyrockets before Black Friday and Christmas has been brought forward to now.
The United States Trade Representative announced on Tuesday 2 June that it has proposed imposing duties of 10% or 12.5% on 60 economies, including the European Union, that it has determined have not done enough to prohibit the importation of goods produced with forced labour. They are accepting public comments on the proposal until Monday 6 July and will hold hearings about its proposed actions on Tuesday 7 July.