- Container shipping costs from South Korea to the U.S. East Coast and Europe rose for the fourth consecutive month in August.
- Geopolitical risks in the Red Sea and heightened demand contributed to rising shipping costs on specific routes.
- Shipping costs to the U.S. West Coast and China showed mixed trends, with some routes seeing declines.
In August 2024, container shipping costs from South Korea to the U.S. East Coast and Europe increased for the fourth consecutive month due to prolonged geopolitical risks in the Red Sea, reports Yonhap News.
Shipping Costs Rise on U.S. East Coast and Europe Routes
The average shipping cost for a 40-foot container from South Korea to the U.S. East Coast surged by 11.9% to 8.66 million won (US$6,530), according to data from the Korea Customs Service.
Costs to Europe saw a more moderate rise, increasing by 2.8% to 8.06 million won.
Geopolitical Tensions Drive Shipping Costs Up
The rise in shipping costs is attributed to the disruption of the Middle East maritime corridor, where Iranian-backed Houthi rebels have attacked vessels in the Red Sea.
Shipping carriers have had to divert routes, leading to extended transit times and higher shipping fees.
Mixed Trends for U.S. West Coast and China Routes
While the costs for shipping containers to the U.S. West Coast fell slightly by 0.8% to 7.28 million won, the cost of shipping containers to China surged by 9.2%, reaching 763,000 won.
This marks the seventh consecutive month of rising costs for China-bound shipments, driven by growing demand.
Shipping Costs Decrease from the U.S. East Coast to South Korea
Interestingly, shipping costs from the U.S. East Coast to South Korea experienced a significant drop of 23.9% month in August, falling to 1.85 million won. Meanwhile, shipments from the U.S. West Coast to South Korea increased by 11% to 2.75 million won.
For shipments from Europe to South Korea, costs saw a minor increase of 0.7%, while costs for shipments from China fell slightly by 0.8%.
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Source: Yonhap News
