Red Sea tensions have escalated shipping container costs from Europe to South Korea by approximately 40% in February amidst ongoing tensions in the Red Sea.
The average cost of shipping a 40-foot container from Europe to South Korea surged by 38.7% on a monthly basis to reach 1.24 million won ($934.16) last month, according to data from the South Korean Customs Agency.
This marks the largest increase since data became available in 2019, according to South Korea’s Yonhap News Agency.
Additionally, the average shipping cost from Korea to the European Union increased by 11.4% to reach 4.69 million won in February.
Tensions persist along the Red Sea route in the Middle East, where Iran-backed Houthi rebels in Yemen continue to attack ships. Consequently, shipping companies have halted maritime shipping, leading to prolonged delivery times and increased costs.
Shipping costs on other routes also rose in February due to Korean exports’ growth.
Shipping costs from South Korea to the West Coast of the United States increased by 18.1% monthly to 5.23 million won, and to the East Coast of the United States by 13.5% to 5.52 million won.
Shipping costs to China rose by 4.6% to 511,000 won, to Vietnam by 15.8% to 678,000 won, and to Japan by 1.3% to 678,000 won.
These figures include shipping rates, commissions, and other costs reported by local exporting companies, according to the agency.
