In December of last year most container vessels had to be rerouted away from the Suez Canal due to the Houthis and now bad weather conditions at the Cape of Good Hope are making passage south of Africa difficult. This has skyrocketed freight rates and the big question now is if we’ll see spillover effects into goods inflation in Europe. We have written more on that topic here argueing that this should be more of a concern to ECB/BoE than to the Fed.