Container Shipping Costs On EU-SK Route Surge 30%

Container shipping costs from Europe to South Korea rose more than 30% in April amid ongoing tensions surrounding the Red Sea, the customs agency said, Oh Seok-min reported for Yonhap News Agency.

The average shipping cost for a 40-foot container from the European Union (EU) to South Korea went up 32.8% last month to 1.85 million won ($1,368).

The average shipping cost for a 40-foot container from the European Union (EU) to South Korea went up 32.8% last month to 1.85 million won ($1,368), the Korea Customs Service said.

It logged the third consecutive on-month increase.

Carriers have been forced to suspend transit through the crucial Middle East maritime route, which has led to longer shipping times and an increase in costs, as tensions remain high over strikes on ships in the Red Sea by Iranian-backed Houthi rebels based in Yemen.

The average shipping cost from South Korea to the EU fell 6.9% to 3.95 million won, the second straight decline.

Compared with a year earlier, however, the shipping cost for exports to the EU marked a 42.6% increase. Costs for shipping from South Korea to the US West Coast rose 4% month-on-month and 7.2% year-on-year in April to 5.07 million won.

Those to the US East Coast declined 4% in April compared to March at 4.99 million won, though the figure marked a 38% year-on-year increase. The shipping cost to China rose 12.1% to 560,000 won, and that to Japan advanced 16.1% to 772,000 won.