Rising Shipping Rates Increase Export Logistics Burden for Chemical Companies

The logistics cost burden for chemical companies with a high share of exports is growing as maritime freight rates on major routes rise simultaneously. According to data released by the Korea Customs Service on the 18th, large-scale maritime transport costs for loading cargo on a container basis rose on all major routes, including the U.S. West Coast (11.1%) and East Coast (14.4%), as well as Europe (EU, 36.4%). According to Korea Customs Service statistics, maritime export transport costs to the U.S. West and East Coasts rose for three consecutive months, while those to the European Union rose for two consecutive months.

The rate of increase is even steeper for routes to the Middle East. Last month, the average maritime export transport cost to the Middle East was 8.78 million won, up 14.5% from the previous month. Compared to the same month last year, this represents a 123.2% increase. Transport costs to the Middle East have risen for five consecutive months, from 3.686 million won in February to 8.78 million won in July.

The rise in maritime logistics costs acts as a burden for chemical companies with a high share of overseas sales. On the 24th, an official from the chemical industry stated, "In the case of exports, there were aspects where we actually benefited when the exchange rate was high," adding, "However, logistics costs have risen significantly this year, leading to an increased burden from logistics fees."