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Container Shipping Costs Surge by 40% on EU-Korea Route amid Red Sea Crisis

Shipping costs for other routes also went up in February amid the growth in Korea's export volumes. - Reuters photo
Shipping costs for other routes also went up in February amid the growth in Korea's export volumes. - Reuters photo
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Container Shipping Costs Surge by 40% on EU-Korea Route amid Red Sea Crisis

Shipping costs for other routes also went up in February amid the growth in Korea's export volumes. - Reuters photo
Shipping costs for other routes also went up in February amid the growth in Korea's export volumes. - Reuters photo

Container shipping costs between Europe and Korea surged by almost 40 percent in February due to tensions in the Red Sea, the highest increase since 2019.

The average shipping cost for a 40-foot container for the route jumped 38.7 percent on month to 1.24 million won ($934.16) last month, according to data from the Korea Customs Service Friday, Yonhap News Agency reported.

The average shipping cost from Korea to the European Union also increased 11.4 percent to 4.69 million won in February.

Tensions remain high along the crucial Middle East route as Iranian-backed Houthis based in Yemen are launching strikes on ships in the Red Sea.

Carriers, accordingly, have been forced to suspend transit through the maritime route, which has led to longer shipping times and an increase in shipping costs.

Shipping costs for other routes also went up in February amid the growth in Korea's export volumes.

Costs for shipping from Korea to the US west coast went up 18.1 percent on month to 5.23 million won and those to the US east coast climbed 13.5 percent to 5.52 million won.

The shipping expense to China rose 4.6 percent to 511,000 won, and that to Vietnam surged 15.8 percent to 678,000 won. Costs for shipping to Japan also inched up 1.3 percent to 678,000 won.

The figures include freight rates, commissions and other charges reported by local exporters, according to the agency.

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Business

Oil Extends Losses as Trump Calls Off Planned Strikes on Iran

FILE PHOTO: A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
FILE PHOTO: A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
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Oil Extends Losses as Trump Calls Off Planned Strikes on Iran

FILE PHOTO: A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo
FILE PHOTO: A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US February 18, 2025. REUTERS/Eli Hartman/File Photo

Oil prices fell over $1 on Friday, extending losses from the previous session after US President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.

Brent futures fell $1.83 or 2% to $88.55 a barrel at 0410 GMT, while US West Texas Intermediate (WTI) crude dropped $1.60, or 1.8%, to $86.11.

Trump, who had threatened to hit Iran "very hard", called off planned strikes on Thursday, saying discussions with ‌Iran had progressed and ‌a peace deal that would reopen the Strait ‌of Hormuz ⁠to shipping could ⁠be signed as soon as this weekend. Iran's semi-official Fars news agency reported that Tehran had not approved the text of any agreement.

"While this could, of course, be yet another false dawn, the market's reaction has been both swift and decisive," said IG market analyst Tony Sycamore.

He added that even as oil prices correct downwards, "as long as the price can hold above support in the low $80s, the ⁠risks remain firmly skewed to the upside."

On Thursday, Iran announced "the ‌closure" of the Strait of Hormuz, through which ‌vessel traffic was already severely limited, saying it would fire on any ship trying ‌to pass through the waterway. The strait normally carries a fifth of global ‌oil and liquefied natural gas shipments and Tehran's months-long blockade has kept energy prices elevated.

State media reported on Friday that Iranian forces prevented a tanker from transiting the Strait of Hormuz without coordination.

The US military said on social media that commercial ships continued to transit ‌the waterway.

"We would be cautious about assuming that the extension of the ceasefire is a done deal. Even ⁠if it is, ⁠it could be fragile. And clearly, if nuclear talks do not progress, it could very easily fall apart," said ING analysts in a Friday note.

"We believe the market reaches an inflection point in late July if we do not see oil flows resuming before then. This is when inventory levels and seasonally stronger demand push prices significantly higher towards $120-130 per barrel."

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day (bpd) from a previous 1.17 million bpd, marking its second straight downward revision.

The producer group also said consumption would rebound later, raising its demand growth forecast for 2027. It expects 2027 oil demand to rise by 1.73 million bpd, up 190,000 bpd from its previous forecast.

Business

Saudi Industry Minister Says Kazakhstan Is a Trusted Partner in Critical Minerals

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said Kazakhstan is a trusted partner in the critical minerals sector. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said Kazakhstan is a trusted partner in the critical minerals sector. (SPA)
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Saudi Industry Minister Says Kazakhstan Is a Trusted Partner in Critical Minerals

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said Kazakhstan is a trusted partner in the critical minerals sector. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said Kazakhstan is a trusted partner in the critical minerals sector. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said Kazakhstan is a trusted partner in the critical minerals sector, which is essential for energy transition, electricity, and advanced manufacturing industries.

He noted that mining partnerships between the two countries contribute to accelerating investment, strengthening supply chains, and creating sustainable industrial value, the Saudi Press Agency reported on Friday.

The remarks were made during a high-level panel discussion on global partnerships and the future of the mining and minerals sector, held as part of the Astana Mining and Metallurgy Congress in Kazakhstan. Government officials and industry leaders from around the world participated in the meeting.

The minister added that Saudi Arabia and Kazakhstan share similar economic and industrial ambitions, as well as a common vision of the importance of developing the mining sector and its role in supporting economic diversification, enhancing industrial resilience, and achieving sustainable growth.

Business

IMF Cuts 2026 Euro Zone Growth Forecast with Higher Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
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IMF Cuts 2026 Euro Zone Growth Forecast with Higher Inflation

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo
FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo

The International Monetary Fund cut its growth forecast for the euro zone on Thursday and raised its expectation for inflation because of the US-Israeli war on Iran, adding that the economic situation could worsen if high energy prices persisted.

In its regular report on the economy of the 21 countries that share the euro currency, the IMF said economic growth this year would be 0.9%, down from ⁠1.1% forecast in ⁠April while inflation would be 2.8%, up from 2.6% forecast in April.

The IMF's had already revised down its euro zone growth forecast in April from its January prediction.

"Following a period of growth at potential and inflation on target, the euro area outlook has weakened," the IMF said in a report presented to ⁠euro zone finance ministers, referring to the war in the Middle East as a "large but temporary adverse supply shock."

"An even more persistent energy shock could raise inflation and inflation expectations further, even as a drop in confidence or financial stress could weaken demand. A resurgence of the conflict in the Middle East or delays in repairing energy infrastructure, intensified hostilities in Ukraine, and further trade policy adjustments pose additional downside risks," Reuters quoted it as saying.

The IMF said the European Central Bank, which earlier on Thursday raised interest rates for ⁠the first ⁠time in nearly three years, was likely to raise rates again for a cumulative 50 basis points increase in 2026, with a third rate rise also possible.

The IMF warned euro zone finance ministers against rushing to cushion their economies against the impact of high energy costs. "Broad-based fiscal support is not warranted," it said.

Many euro zone members had already introduced measures, averaging around 0.1 percent of GDP across the EU on a GDP-weighted basis as of May 2026.

It said, despite their limited scale so far, the measures likely blunted incentives for energy conservation and that future measures should targeted more to protect vulnerable households.