Ministry of Oceans and Fisheries Revises and Implements Freight Rate Publication System: "All Routes' Charges Must Be Published Four Times Annually"

Container ship appearance [Reference photo]

[Sejong=Asia Economy Reporter Joo Sang-don] Starting next month, freight rates and charges for all routes must be announced quarterly, categorized by container type and size, transshipment status, and ownership.

The Ministry of Oceans and Fisheries announced on the 29th that it will revise the "Regulations on the Announcement of Freight Rates and Charges by Foreign Shipping Operators" to include these details, effective from July 1.

The container cargo freight rate announcement system was introduced in 1999. However, there have been criticisms that the types and frequency of freight rate announcements made by shipping companies were insufficient, resulting in inadequate freight information for cargo owners. Additionally, issues such as freight dumping, where overall freight rates fail to cover vessel operating costs among shipping companies, have persisted.

In response, the Ministry of Oceans and Fisheries amended the "Shipping Act" on February 21 this year to prevent such unfair trade practices, and accordingly, the freight rate announcement system has been improved and will be implemented.

Until now, domestic and international foreign regular cargo transport operators announced four types of freight rates and three types of charges twice a year for 130 major routes, categorized by container type and size. Going forward, they must disclose 288 types of freight rates for all routes, categorized by container type, size, transshipment status, and ownership. Additionally, the existing three charges?fuel surcharge, currency adjustment factor, and terminal handling charges?will be expanded to eight types by adding document issuance fees, cargo delivery order fees, low sulfur fuel surcharges, wharf usage fees, and container sealing fees, all to be announced quarterly.

However, "import cargo" is exempted from announcement because contracts and freight rates are determined overseas, making it difficult to verify compliance with announced rates, and there is concern about discrimination based on the nationality of the shipping company. Also, recycled materials such as used clothes, waste paper, scrap metal, plastic, and leather scrap are exempted from announcement.

Furthermore, if foreign shipping companies or cargo owners become aware of violations of prohibited acts under the Shipping Act, anyone can report to the "Unfair Shipping Transaction Reporting Center" established by the Korea Ocean Business Corporation and the Korea Shipowners' Association. The Ministry of Oceans and Fisheries will collect related materials from the reported parties, investigate the facts, and if necessary, conduct on-site inspections of shipping companies and cargo owners’ business locations. If violations are confirmed, strong measures will be taken in accordance with the law.

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