21.12.28Port Congestion Balloons Rates on Korea-Russia Trade

In 2021, container trade sharply increased between South Korea and Russia to transport auto parts and components, chemical products and other goods. Containers were carried on the so-called Siberia Land Bridge (SLB) owing to shipping space shortages between Asia and Europe. Freight rates on the route also surged.

Containers moved from Busan to Vladivostok and Vostochny in January-November jumped nearly 50% from a year earlier to 81,200 TEUs. As a consequence, there was ship and freight congestion at the Russian Far East ports, which acted as factors behind rises in freight rates. At the beginning of the year, they were about $1,100 per TEU, but in mid-December, they reached a record high of $6,000 per TEU.

Container movement tends to slow in winter due to freezing. As the efficiency of container loading and unloading is also down, however, freight rates are projected to remain high.