The Korea Herald


Container rates for US west coast jump over 30% in Aug.

By Yonhap

Published : Sept. 15, 2022 - 11:02

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Busan port (Yonhap) Busan port (Yonhap)

SEJONG -- Shipping costs for container cargo bound for the west coast of the United States soared more than 30 percent in August from a year earlier, but their growth rate slowed from the previous month, government data showed Thursday.

The average freight rate for a 40-foot container from Asia's fourth-largest economy to the US west coast reached 14.31 million won ($10,300) last month, up 32.3 percent from a year earlier, according to the data from the Korea Customs Service.

Yet the on-year increase rate was lower than 42.2 percent for July, 63.7 percent in June, 82.9 percent in May and 139.1 percent in April.

The shipping cost for a 40-foot container from South Korea to the east coast of America surged 26.3 percent on-year in August, with that to the European Union spiking 38.5 percent.

From the previous month, the rate for container cargo bound for the US east coast fell 5.1 percent, marking the fifth straight month of declines.

The on-month decrease was attributed to a base effect and a recent slowdown in consumer spending in the world's largest economy.

Shipping costs for China and Vietnam shot up 27.4 percent and 83.2 percent, respectively, in August from a month earlier, with that to Japan edging up 0.5 percent.

The figures are based on freight rates reported by local exporting companies.

The data also showed South Korean importers' cost for shipping a 40-foot container from the west coast of America swelling 45.5 percent on-year last month.

Comparable on-year growth rates were 20.7 percent from the US east coast, 11.7 percent from the EU, 27 percent from China, 31.7 percent from Japan and 44.4 percent from Vietnam.

The KCS started unveiling shipping rates for inbound containers in July, while the service began announcing outbound container shipping costs in November last year. (Yonhap)

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