Regional routes serve South Korean carriers better than long-haul
Many of South Korea’s regional carriers and feeder operators have announced their 2025 numbers, reporting ...
By Alison Koo
South Korea’s government and International Trade Association (KITA) are working with local container shipping companies and airlines to offer discounts to mitigate the impact of rising freight rates.
The move is particularly aimed at helping exporters to India and other Asian destinations where ocean freight rates are about $1,097 per 40ft now, more than 20% higher year on year, and air cargo prices have jumped 40%, since the US/Israel-Iran war started on 28 February.
On Monday, the ministries of Trade, Industry and Energy, and Oceans and Fisheries, joined local forwarders, shipping lines, and airlines to launch the three-pronged support scheme for shippers, based on cargo size and mode of transport.
For sea freight, eight domestic carriers – KMTC, Sinokor, Heung-A, Namsung, Pan Ocean, CK Line, Pan-Continental, and Dongjin Shipping – will set aside 1,680 teu a month on which to offer between 10% and 20% discounts on full container-load shipments to India and South-east Asia.
For de minimis shippers that rely on less than-container-load shipments as they find it difficult to fill a box, the shipping lines will work with compatriot forwarder Samsung SDS to offer discounts on more than 20 ocean routes, including the transpacific and Asia-Europe, throughout the year.
And to meet the rapidly increasing demand for air freight, the ‘KITA Express’ scheme will begin on Friday when discounted rates will be offered to exporters of consumer goods, such as cosmetics and clothing, to the US and Europe.
In addition, post-war logistics measures are being prepared, in case the Middle East conflict stabilises.
KITA’s head of logistics, Han Jae-wan, said: “If the war ends, the demand for seaborne exports to the Middle East, which have been delayed, will be pent-up for a while, and it may become difficult for small and medium-sized shippers to secure shipping services again. We have to prepare for such a situation.”
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