Container shipping rates are surging amid the Iran War: The spot rate for a 40-foot container from Asia to the US West Coast jumped +$655, or +20%, over the last week, to ~$3,933, the highest in at least 6 months. At the same time, the rate from Asia to Northern Europe jumped +$793, or +27%, to ~$3,649. Since the start of the Iran War, Asia-to-US container rates have surged +109%, and Asia-to-Europe rates are up by more than +50%. This comes as shipments rerouted around the blocked Strait of Hormuz are causing severe congestion at Southeast Asian transshipment hubs, including Singapore and Malaysia. On top of this, carriers are charging importers fuel surcharges and shifting costs, while a pickup in demand heading into peak season for booking ocean freight is adding further pressure. Looking ahead, available shipping capacity is set to shrink further as importers rush to replenish inventories in July and August, which could push rates even higher. Supply chain pressures are intensifying.(The Kobeissi Letter)