The war in Ukraine and abnormally low water levels in the Panama Canal due to climate change have posed major challenges to global trade, while the crisis in the Red Sea has made the situation for global shipping even more precarious. 

Jan Hoffmann, Director of the Trade Logistics Branch of the United Nations Conference on Trade and Development, said: "The impact is huge when you consider that the current average container spot freight rate has skyrocketed." 

Since the beginning of December 2023, the average shipping cost from Shanghai has more than doubled and the average shipping cost to Europe has more than tripled. Even if ships bound for the US West Coast do not transit the Suez Canal, their average shipping costs have increased.