S. Korean exporters to be burdened by soaring freight rates next year

South Korean exporters are expected to suffer from soaring freight rates throughout next year as leading shipping firms reduce business due to the pandemic while the US and China push up demand.

Demand for shipping services is set to rise over the remainder of 2020 due to higher demand during the Christmas season and other promotional events by retailers.

Air shipping services may get more costly next year if mobilized to deliver COVID-19 vaccines.

Meanwhile, local air carriers and shipping firms would benefit from the rising costs.

HMM Co., South Korea's biggest shipper by sales, turned to profitability in the second quarter, marking the first time in 21 quarters, and reported a record-high operating income in the third quarter.

Meanwhile, Korean Air Lines Co., South Korea's biggest carrier, enjoyed a 76 billion won operating profit in the third quarter.