Africa faces rising goods costs as global freight charges soar, a move that will significantly impact the continent.

The situation is exacerbated by a shortage of empty containers and the Red Sea crisis, complicating global maritime trade.

Last week, the spot rate for sending a 40-foot container from China to North Europe was $4,615, nearly 3.5 times higher than on May 1. This rate excludes $10,000 "diamond tier" rates for priority shipments.

The current situation leaves Africa at a crossroads, with most ships prioritising goods shipments to the Americas and Europe, which can pay a premium, at the continent's expense, as witnessed during the COVID-19 pandemic in 2020.

During that period spot rate from China to the US East Coast was $6,061, up from $2,772 on May 1 and peaking at $11,900 in January 2022.

Alternative shipping routes around Africa, for ships that are avoiding the red sea, have added about 11,000 nautical miles (one to two weeks of transit time) and approximately $1 million in fuel costs per voyage, significantly pushing up freight charges.

In 2020, the maritime industry experienced an unprecedented shortage of empty containers, driving the cost of shipping a 40-foot container to historic highs.

"There is a cocktail of uncertainty and disruption across global ocean freight supply chains," Peter Sand, chief analyst at pricing platform Xeneta is quoted by Reuters.

"It is the speed and magnitude of this recent rate spike that has taken the market by surprise."

According to container shipping market intelligence company Linerlytica, worsening port congestion has immobilised approximately two million TEU of ships.

On Thursday, Sea-Intelligence issued a note forecasting that Asia-Europe spot prices could exceed $20,000.

"The pandemic set a precedent, showing that during times of severe distress, freight rates per nautical mile can reach very high levels," said Alan Murphy, CEO of Sea-Intelligence.