Global demand for ocean freight container shipping reached a record high in May, driven by surging volumes from the Far East and compounded by port congestion and Red Sea diversions, reported London's SeaNews.

A total of 15.94 million TEU were shipped in May, surpassing the previous record of 15.72 million set in May 2021, according to Xeneta and Container Trades Statistics. Year-to-date volumes reached nearly 74 million TEU, up 7.5 per cent from the same period in 2023.

Xeneta analyst Emily Stausboll said the surge in containerised goods coincides with reduced capacity due to longer sailing routes around Africa and congestion in Asian and European ports. She described the situation as a ��erfect storm��for global supply chains.

China led the growth with 6.2 million TEU exported in May, accounting for 39 per cent of global container trade. Spot rates from the Far East to the US west coast rose 200 per cent to US$7,840 per FEU by July 9, while rates to the US east coast climbed 130 per cent to $9,550.

Spot rates also increased in North Europe and the Mediterranean by 148 per cent and 88 per cent, respectively. Ms Stausboll warned that early peak volumes could reduce demand later in the year, with shippers frontloading imports amid tariff concerns.

TEU-miles, which measure global container transport distance, rose 17.9 per cent in 2024 compared to 2023, largely due to Red Sea diversions. Had carriers used the Suez Canal, the increase would have been 8.6 per cent.

Ms Stausboll said the data confirms a real capacity crunch, not market panic, and noted that without the Red Sea conflict, the industry would have faced significant oversupply in 2024.