Supply Chain: Why Ocean Rates Skyrocketed 300% in 5 Months

GEODIS Americas President and CEO Laura Ritchey reveals the stark reality of today’s “uneven” economy and its impact on supply chains. While some sectors thrive, others grapple with extreme ocean shipping delays, surging freight rates, and emerging challenges from data center infrastructure. Learn how companies navigate unprecedented backlogs and leverage new tech like AI for predictive logistics.

Ocean spot rates have surged more than 300% over the past five months, and shippers are feeling the squeeze, according to GEODIS Americas President and CEO Laura Ritchey. Blank sailings, port congestion, and ongoing threats in the Red Sea and Strait of Hormuz have combined to create a backlog that is straining manufacturing supply chains, Ritchey told FreightWaves Today.

“We have product that we’ve been trying to book since March that’s still rolling in July,” Ritchey said. “And for people in the manufacturing space where they need these things on their assembly line, they’re not too happy.”

“We aren’t seeing quite the COVID levels, but a container is a lot more expensive than it was just a few months ago.”
— Laura Ritchey, GEODIS Americas President and CEO

Ritchey said air freight capacity exists as an alternative but comes at a cost shippers must be willing to absorb. She noted that big tech customers are navigating chip shortages and semiconductor import constraints simultaneously, compounding pressure on both ocean and air modes. GEODIS, which employs 20,000 workers across 230 U.S. sites, is staying close to customer forecasts to help manage the uncertainty.

Despite uneven demand across sectors, Ritchey pointed to pockets of strength. Some GEODIS customers are posting sales growth of 30% to 40%, while others are flat. Apparel is a bright spot, with unit volumes rising even on an inflation-adjusted basis, while housing improvements and new housing starts remain soft. The bifurcation, she said, largely depends on each customer’s end-market exposure.

On the technology front, Ritchey said GEODIS is deploying AI to manage shipment data and trucker oversight, and is using the tools to train and upskill warehouse associates who collectively speak more than 30 languages. The company is also piloting drones for inventory management inside warehouses, citing both accuracy and worker safety benefits over traditional cycle counting. Ritchey added that supply chain orchestration — using predictive data to autonomously respond to disruptions — will define the next two to three years for third-party logistics providers.

Ritchey, who completed her first year at GEODIS’s Nashville headquarters, said she created a client experience organization earlier in 2026 by consolidating previously fragmented functions: continuous improvement, data and analytics, and account management. She modeled the structure partly on changes made at American Airlines, which reorganized its customer journey after identifying internal silos that prioritized operational convenience over the passenger experience. The new group reports directly to Ritchey to ensure organizational neutrality.

Looking ahead, Ritchey said she is most encouraged by a broader shift in how shippers are approaching outsourcing decisions. “People are back to actually thinking about supply chain as partnerships instead of transactional,” she said, adding that shippers are more deliberately defining which core functions — product, marketing, manufacturing — they want to control and which they will entrust to a 3PL. GEODIS is owned by SNCF, the French national railroad, which Ritchey said provides financial stability and compliance infrastructure that has become increasingly valuable following the Supreme Court’s Bisected Freight ruling and tightened broker liability scrutiny.

• Ocean spot rates have climbed more than 300% in five months, with cargo booked in March still rolling into July due to blank sailings and Red Sea disruptions.
• GEODIS Americas President and CEO Laura Ritchey consolidated continuous improvement, data analytics, and account management into a new client experience organization reporting directly to her.
• GEODIS is piloting drones for warehouse inventory management and using AI to train associates across 30-plus languages as automation expands.