Why did the sea freight cost go crazy in May?

Why did the sea freight cost go crazy in May?

A new round of annual contract negotiations: In the consolidation market, a new round of annual contract negotiations is underway, with fluctuating freight rates, which is beneficial for some enterprises in contract negotiations. The freight rates from the Far East to the Mediterranean have increased by over 60% compared to last year, which usually supports new annual contract rates.
Politics: Tariffs increase, led by the United States, it is inconvenient to say more
The Panama Canal: The Panama Canal, a crucial hub for container shipping, is under threat as the drought crisis intensifies and costs rise significantly.
Red Sea Crisis: The armed actions of Hussai have long affected European shipping routes, forcing major shipping companies to detour to the Cape of Good Hope in Africa. The capacity of African shipping routes was originally limited, but this year there has been a influx of a large number of ships, with long shipping schedules and an increase in transit ports. This may lead to shipping companies increasing the number of ships to maintain their scheduled services, thereby causing capacity shortages and rising freight rates. In addition, the long voyage and congested transit ports have resulted in many containers not being able to return, which is also one of the main reasons for the recent shortage of containers.
Shipping company adjustment of rates: Multiple shipping companies such as MSC, Maersk, Dafei, COSCO Shipping, Herbert, HMM, etc. have continuously adjusted rates for routes involving Europe, the Mediterranean, North America, and other regions since May. If major shipping companies successfully implement the comprehensive rate surcharge (GRI) price increase plan, based on the current level of freight rates, it is expected that there will be a significant increase in freight rates.
Peak season surcharges increase: Shipping companies such as Maersk and Delta have announced that they will impose peak season surcharges on multiple routes in South America, India, Pakistan, Africa, and other regions, which will also push up shipping costs.
Strike risk: The risk of strikes on the East Coast of the United States, the transfer of cargo volume on the East Coast, or congestion at West Coast ports and rising freight rates.
Overall, the reasons for the increase in sea freight rates in May are multifaceted, and the combined effect of multiple factors has pushed up sea freight rates.