Shipping capacity is returning to Red Sea while rates from China to Jeddah and Khor al Fakkan break Covid-19 records
Capacity transiting the Bab el-Mandeb strait in August doubled compared to 12 months ago, but still sits at just 23% of pre-Red Sea crisis levels in August 2023. Average spot rates from China to Jeddah and Khor al Fakkan rose 256% and 479% respectively since 28 February, surpassing previous Covid-19 records. The Strait of Hormuz has been closed to container shipping for more than half a year, with land bridges via Jeddah and Khor al Fakkan established.
Why it matters: This matters for maritime chokepoints and supply-chain costs, as the partial return to the Red Sea and the sustained closure of the Strait of Hormuz are reshaping container freight rates.