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Red Sea Crisis Drives Up Shipping Prices in Germany

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Shibhaljazeera Net | Shipping | Red Sea

Data from the Federal Statistical Office of Germany (Destatis) has shown an increase in transportation and shipping service prices in Germany.

In the second quarter of this year, prices for all services in Germany rose by 2.3% compared to the same quarter in 2023, and by 1% compared to the first quarter of this year, according to Destatis data.

Germany experienced strong growth in road freight, as well as in sea and air shipping services, as noted by the agency. Transportation and storage services increased by 3.3% compared to the same quarter last year, marking the highest price increase across all service sectors.

The main reason for this increase was the rise in shipping prices, which went up by 6.7% compared to the second quarter of the previous year. In the maritime shipping sector, prices surged due to Houthi militia attacks on commercial vessels in the Red Sea. In air shipping, an increase in consumer purchases from Asia led to capacity bottlenecks at e-commerce stores, driving up prices.

There was also a noticeable rise in road transport prices, with an annual increase of 6%, driven by higher truck wages and employee costs.

As for sea transport, prices rose by 4.6% from April to June this year compared to the same period last year. However, prices in this sector dropped by 1.1% compared to the first quarter of this year. It is worth noting that the Red Sea crisis led to a rise in sea transport prices by as much as 26.6% in the first three months of 2024.

Source: Transinfo Germany

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