News
A recent Yellow Sea Liners Committee (YSLC) report revealed that 241,200 TEUs of containers were traded between South Korea and China in July, which surged 10.2% from a year earlier. In breakdown, local cargo totaled 224,600 TEUs, which soared 11.6%, and feeder cargo accounted for the remaining 16,600 TEUs, which fell 5.5%.
Containers movement was favorable in both directions, with those from South Korea to China going up 10.1% to 96,400 TEUs and those from China to South Korea, up 10.3% to 144,800 TEUs.
Taking advantage of the growth in container trade, carriers catering to the trade between the two Asian economies are working to restore freight rates. From South Korea to China, there have no longer been negative freight rates since Seoul introduced a system to make freight rates public earlier this year. As a consequence, freight rates for services from South Korea to China have increased by approximately US$30 per TEU. It is estimated that total fares that include terminal handling charges (THCs) of 110,000 won have inflated $50 to $100 per TEU.
From China to South Korea, meanwhile, shipping lines intend to hike freight rates by $50 per TEU, expecting that shipments will increase before China’s founding anniversary day.
