To Promote Win-Win Cooperation... Introduction of the 'Excellent Shipping Company Certification System'

Enforcement of the Amendment to the "Haewoon Act" on the 21st

[Sejong=Asia Economy Reporter Joo Sang-don] A 'Certification System for Excellent Shipping and Cargo Owner Companies' to promote voluntary win-win cooperation between shipping companies and cargo owner companies will be introduced.

On the 20th, the Ministry of Oceans and Fisheries announced that following the passage of the amendment to the "Shipping Act" containing this provision in the National Assembly last August, it has completed the revision of subordinate statutes necessary for the enforcement of the law and will implement it from the 21st.

The newly introduced certification system for excellent shipping and cargo owner companies targets those registered for international scheduled cargo transportation business and cargo owners (including international logistics brokerage companies). Certification will be decided through an examination by a dedicated certification agency. To ensure fairness in the examination, the certification agency must operate a certification review committee composed of experts in shipping, logistics, and trade.

The Minister of Oceans and Fisheries may conduct ad hoc inspections once a year and regular inspections every three years, and cancel certification if the standards are not met. In other words, even companies that initially receive certification must continuously strive for win-win cooperation to maintain certification and continuously receive benefits.

The Ministry plans to designate and announce the Korea Ocean Business Corporation as the dedicated certification agency in early March. Subsequently, it will hold briefing sessions for related industry and organizations to provide detailed information on the certification system, including certification procedures, required documents and scoring for the review, and benefits granted to certified companies.

A system to ensure fair and transparent maritime cargo transportation contracts between shipping companies and cargo owners will also be introduced. To establish fair contract practices, the amended law stipulates that the Minister of Oceans and Fisheries shall prepare and distribute a standard contract form necessary for concluding long-term transportation contracts, or have the Korea Shipowners' Association prepare and distribute such a standard contract form. Furthermore, when concluding long-term transportation contracts of three months or longer, the contract must include ▲ preferential conditions for freight and charges ▲ minimum transportation volume ▲ matters concerning negotiation of freight and charges due to raw material price increases.

To strengthen the right to know of stakeholders such as cargo owners and promote the sound development of the shipping industry, the scope of publication of maritime cargo transportation freight and charges will be expanded, and the timing of publication will be advanced. In the future, not only international scheduled cargo transportation operators but also international scheduled passenger transportation operators (international ferry operators) must publish freight and charges at least 15 days (previously 5 days) before their application.

Detailed matters regarding the application of the freight publication system will be separately revised and implemented through announcements. However, considering the ongoing urgent response by shipping companies due to the recent COVID-19 outbreak, matters with enforcement dates set by the amended shipping law will be implemented on the 21st, while some other announcement revisions will be deferred until July 1 this year to allow shipping companies sufficient preparation time.

Additionally, anyone who becomes aware of violations of the publication of freight and charges, contents of long-term transportation contracts, or prohibited acts by international cargo transportation operators or cargo owners may report to corporations or organizations designated and announced by the Minister of Oceans and Fisheries. If the reported content is deemed likely to harm the sound development of the maritime transportation market, the Minister may order necessary measures.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "In Korea, where 99.7% of import and export cargo is transported by sea, win-win cooperation between shipping and cargo owner companies will greatly contribute not only to their mutual growth but also to strengthening Korea's import and export competitiveness."

This content was produced with the assistance of AI translation services.