Global effective capacity has sharply declined, freight rates on Asia-Europe routes have surged, and supply chain disruptions are worse than at the onset of the pandemic.
The Red Sea crisis has escalated since the Houthis seized the "Galaxy Leader" in 2023 year, 11 month. In 2024 year, 1 month, weekly Red Sea shipping capacity dropped by 57% below the annual average—a decline exceeding the 47% drop seen at the start of the COVID-19 pandemic in 2020 year. Approximately 80% to 90% of container ships were forced to bypass the Suez Canal and reroute around Africa's Cape of Good Hope, adding 7 to 14 days per voyage.