Container shipping costs between Korea and Europe have surged by nearly 40%, attributed to ongoing tensions in the Red Sea region. The Korea Customs Service reported significant increases in shipping expenses, impacting trade routes between Korea and various global destinations.
Escalating Costs on Korea-EU Route
The average cost of shipping a 40-foot container from Korea to the European Union saw a substantial year-on-year increase of 39%. This surge is primarily due to disruptions in the Middle East maritime route, leading to longer transit times and heightened shipping expenses.
Impact of Red Sea Tensions
Tensions in the Red Sea, particularly strikes on ships by Iranian-backed Houthi rebels based in Yemen, have compelled carriers to suspend transit through the region. Consequently, shipping costs have risen, reflecting the challenges faced by the shipping industry in navigating through conflict zones.
Varied Trends in Global Shipping
While shipping costs from Korea to the EU surged, costs for routes to other destinations exhibited mixed trends. For instance, shipping costs to the U.S. West Coast decreased, while costs to China and Japan experienced moderate increases. These fluctuations highlight the dynamic nature of global shipping and its susceptibility to geopolitical tensions and market conditions.
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Source: The Korean Times
