Ocean freight rates for exports to the U.S. East Coast have roughly doubled in four months, hitting the highest level this year. Rates to the U.S. West Coast rose nearly 70% over the same period, while Middle East rates climbed for a sixth straight month, keeping shipping costs elevated for Korean exporters amid logistics risks in the region.
Export freight rates to the U.S. East Coast averaged 9.97 million won ($7,200) per 2 TEU last month, according to the Korea Customs Service's monthly report on export and import shipping costs released on the 15th. That marks a 95.3% increase from this year's low of 5.11 million won in April. Rates were up 24.8% from the previous month and 75.8% from a year earlier, rising for four consecutive months since May to approach the 10 million won mark. The month-on-month gain of 1.98 million won was the largest among seven export routes.
Rates to the U.S. West Coast stood at 8.59 million won, up 0.5% from the previous month. That route also rose for a fourth straight month, gaining 69.7% from April and 59.4% from a year earlier.
Middle East rates came in at 8.84 million won, up 1.7% from July. The 133.7% increase from a year earlier was the steepest among the seven export routes.
Rates on European Union and short-haul routes, by contrast, fell from the previous month. The EU route was 5.01 million won, down 9.4% month on month, though still 36.3% higher than a year earlier.
Rates to China fell 22.4% from the previous month to 652,000 won, the largest decline, but were up 13.8% from a year earlier. Rates to Japan slipped 0.7% to 662,000 won, falling for a sixth consecutive month and coming in 7.9% below the year-earlier level. Rates to Vietnam dropped 9.0% to 1.56 million won, roughly unchanged from a year earlier.
Ocean freight rates for imports mostly declined. Rates from the Middle East fell 17.7% to 1.46 million won per 2 TEU, the sharpest drop. Rates from the EU fell 11.8% to 1.15 million won, and rates from the U.S. East Coast fell 8.0% to 1.60 million won. Rates from China and Vietnam declined 4.3% and 5.0%, respectively. Rates from the U.S. West Coast, however, rose 2.2% to 2.59 million won, and rates from Japan climbed 14.4% to 1.27 million won.
