- Shipping rates from South Korea to the U.S. have surged following a temporary halt in U.S.-China tariffs, with costs rising up to 15% in a week.
- The rush to export goods before tariffs return has led to higher demand and container fees, raising concerns for Korean exporters facing increased logistics costs.
A week after the U.S. and China agreed to pause their tariff dispute for 90 days, shipping costs from South Korea to North America have risen by over 10%. This increase is mainly due to a surge in Chinese exports being redirected through South Korean ports.
Shipping Prices Rise After Tariff Suspension
Freight rates from South Korea to the U.S. West Coast jumped to $2,898 per 40-foot container as of May 19, marking a 15% increase from the previous week, according to the Korea Ocean Business Corporation. Rates to the East Coast also rose by 13%. Meanwhile, the Shanghai Containerized Freight Index, a key global benchmark, climbed 9.9% week-on-week, with U.S.-bound routes seeing even sharper rises—31% to the West Coast and 22% to the East Coast.
This spike was widely anticipated after the U.S. and China agreed on May 12 to suspend tariffs over 100%, effective May 14. Shipping companies quickly raised container fees by $1,000, and some experts predict rates could hit $6,000 by June.
The temporary pause in tariffs has triggered concerns about panic buying, reminiscent of the pandemic-era import rush. Carriers expect a surge in shipping volumes during the third quarter, ahead of major retail events like Black Friday and Christmas. However, for Korean exporters, the race to ship early may come at a cost. As rates continue to rise, higher logistics expenses could cancel out the advantage of avoiding new tariffs.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: TheChosenDaily
