Container shipping costs to U.S. east coast, Europe up for 4th month

Container shipping costs from South Korea to the U.S. east coast and Europe increased for the fourth consecutive month in August amid prolonged geopolitical risks in the Red Sea, data showed Thursday. The average shipping cost for a 40-foot container from South Korea to the U.S. east coast rose 11.9 percent on-month to 8.66 million won (US$6,530), according to data from the Korea Customs Service. The cost to Europe increased to 8.06 million won, up 2.8 percent over the same period. On the other hand, shipping costs for containers to the U.S. west coast fell 0.8 percent to 7.28 million won, the data showed. Shipping carriers have been forced to halt passage through the vital Middle East maritime corridor following attacks on vessels in the Red Sea by Iranian-backed Houthi rebels based in Yemen, leading to extended transit times and higher shipping costs. The cost of containers heading to China jumped 9.2 percent to 763,000 won amid rising demand, the data showed, extending gains for the seventh consecuti ve month. Meanwhile, shipping costs from the U.S. east coast to South Korea fell 23.9 percent on-month to 1.85 million won in August, while shipments from the west coast rose 11 percent to 2.75 million won. For shipments from Europe, the cost increased 0.7 percent, while those from China decreased 0.8 percent. The figures include freight rates, commissions and other charges reported by local exporters, according to the agency. Source: Yonhap News Agency