Container shipping costs from South Korea to the United States fell in July, driven by reduced trade volumes linked to U.S. tariff policies, according to the Korea Customs Service. While rates to the U.S. and China saw declines, costs for shipments to the European Union increased.
Decline in U.S.-Bound Shipping Costs
The average cost of transporting a 40-foot container from South Korea to the U.S. east coast dropped by 4.5 percent from June, settling at 6.4 million won (US$4,610) in July.
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Rates to the U.S. west coast saw a sharper fall, declining 8.5 percent to 5.53 million won.
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Shipping costs to China also recorded a 6.2 percent decrease, averaging 634,000 won.
Increase in EU-Bound Freight Rates
In contrast, the average shipping cost from South Korea to the European Union rose by 6.3 percent month-on-month in July, reaching 4 million won. The customs agency noted that short-term upward pressure on shipping costs is expected to persist on European and Southeast Asian routes.
Factors Behind the Decline
According to the Korea Customs Service, the decline in freight rates to the U.S. and China was mainly due to reduced trade volumes triggered by escalating tariff policies. The slowdown in demand directly influenced maritime transport rates.
While container shipping costs to the United States and China eased in July, highlighting the impact of trade frictions, routes to Europe experienced a contrasting rise. Experts suggest that shifting global trade dynamics and tariff measures will continue to shape shipping costs in the coming months, with particular pressure on European and Southeast Asian trade lanes.
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Source: YONHAP NEWS AGENCY
