Container shipping costs surge by 40% on EU-Korea route amid Red Sea crisis

Busan Port [YONHAP]

Container shipping costs between Europe and Korea surged by almost 40 percent in February due to tensions in the Red Sea, the highest increase since 2019.

The average shipping cost for a 40-foot container for the route jumped 38.7 percent on month to 1.24 million won ($934.16) last month, according to data from the Korea Customs Service Friday.

The average shipping cost from Korea to the European Union also increased 11.4 percent to 4.69 million won in February.

Tensions remain high along the crucial Middle East route as Iranian-backed Houthi rebels based in Yemen are launching strikes on ships in the Red Sea.

Carriers, accordingly, have been forced to suspend transit through the maritime route, which has led to longer shipping times and an increase in shipping costs.

Shipping costs for other routes also went up in February amid the growth in Korea's export volumes.

Costs for shipping from Korea to the U.S. west coast went up 18.1 percent on month to 5.23 million won and those to the U.S. east coast climbed 13.5 percent to 5.52 million won.

The shipping expense to China rose 4.6 percent to 511,000 won, and that to Vietnam surged 15.8 percent to 678,000 won. Costs for shipping to Japan also inched up 1.3 percent to 678,000 won.

The figures include freight rates, commissions and other charges reported by local exporters, according to the agency.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]