InvestIdeas

Spiking ocean shipping rates, vessel backups at seaports and empty container shortages — issues that wreaked havoc on global trade during the Covid pandemic supply-chain crisis — are back as the industry enters its busy season.

Ships on the China to Europe and China to US East Coast lanes are instead sailing around Africa, cascading disruptions and higher costs across supply chains that rely on ocean vessels that transport about 80% of international trade volume.

Port congestion in China and other Asian countries is pressuring an over-stretched container shipping market that is already reeling from shortages in vessel space and equipment.

Singapore, the world's second-busiest container port, is now experiencing severe delays. Some ships are skipping calls there, upending schedules at downstream ports.

Empty containers also are piling up in Sri Lanka and the United Arab Emirates, while China and Singapore are reporting shortages.