SE Asia faces shipping crisis as container shortage drives freight rates to record high

The global supply chain is experiencing turbulence as South-east Asia grapples with a shortage of vessels and containers, driving freight rates to unprecedented highs. Recent reports indicate that businesses across Malaysia, Thailand, Vietnam, and other neighbouring countries are facing significant challenges in securing shipping capacity, leading to disruptions and soaring costs.

What is pushing freight rates higher? Several factors, alongside the ongoing Red Sea crisis, are contributing to the current supply chain disruptions. Chinese exporters, reacting to rumors of potential US duties, are reportedly hoarding containers to maximize shipments to other markets. This shift away from the US market has caused