Container shipping costs from South Korea to the U.S. east coast and Europe increased for the third consecutive month in July amid prolonged geopolitical risks in the Red Sea, data showed Friday, according to Yonhap.
The average shipping cost for a 40-foot container from South Korea to the U.S. east coast jumped 28.1 percent on-month to 7.73 million won (US$5,669), according to data from the Korea Customs Service. The cost to Europe rose to 8.08 million won, up 39.2 percent over the same period.
Shipping costs for containers to the U.S. west coast also increased for the fourth consecutive month, rising 20 percent on-month to 7.34 million won. Shipping carriers have been forced to halt passage through the vital Middle East maritime corridor following attacks on vessels in the Red Sea by Iranian-backed Houthi rebels based in Yemen, leading to extended transit times and higher shipping costs.
The cost of containers heading to China jumped 27.2 percent to 707,000 won amid the rising demand, the data added, extending gains to six consecutive months. Meanwhile, shipping costs from the U.S. west coast to South Korea decreased 10.7 percent on-month in July, while costs from the east coast rose 3.5 percent.
For shipments from Europe, the cost fell 7.9 percent, while those from China increased 12.8 percent. The figures include freight rates, commissions and other charges reported by local exporters, according to the agency.
Source: Port News
