Container freight rates climb to multi-month highs as ships reroute around the Cape of Good Hope

As risk intensifies at the Hormuz, Bab al-Mandeb and Red Sea chokepoints, global container freight rates have climbed to multi-month highs. According to the freight platform Freightos in early July, spot container rates on major lanes jumped by about $1,000 per 40-foot container, and Drewry's World Container Index reached its highest level in roughly 22 months.

Most shipping lines are still choosing the longer Cape of Good Hope route rather than the Red Sea, adding 10 to 14 days of transit and $800 to $1,500 per container on Asia-Europe and Asia-US East Coast lanes.

Higher freight costs raise the price of imported goods worldwide, including for Iran's economy.