Ocean freight rates for shipments to China, Vietnam soar in November

[Photo by Yonhap]

South Korea’s ocean transportation costs for exports to China and Vietnam have increased in November from a month ago.

According to data released by the Korea Customs Service on Friday, the ocean freight rate per 2 twenty-foot equivalent unit (TEU) for exports to China averaged 507,000 won ($392.17) in November, up 8.7 percent from October.

The rate rebounded in one month after plunging 16.1 percent in October.

Sea shipping costs for exports to Vietnam also rose 9.1 percent to 710,000 won, the first rebound in four months.

Ocean freight costs for major distant routes, on the other hand, fell, with those to the Western United States declining by 1.6 percent in November from the previous month, Eastern U.S. by 0.8 percent, and the European Union (EU) by 1.9 percent.

The ocean shipping costs to Japan also fell 1.4 percent.

Compared to a year ago, freight rates for all major routes fell, with those to Western U.S. declining by 53.2 percent and those to China by 58.9 percent.

Sea freight rates for imports from the Western U.S. dropped by 15.6 percent, the EU by 19.1 percent, Japan by 6.3 percent, and Vietnam by 17.8 percent, data showed.

The rates for imports from the Eastern U.S. and China, on the other hand, gained 8 percent and 6.5 percent, respectively.