Preventing Shipping and Logistics Crisis... Industry Minister Visits Comprehensive Response Center

by Moon Chaeseok

Published 08 Dec.2020 11:00(KST)

"Thorough Management of Logistics Difficulties... Government Measures Implemented Without Delay"

Sung Yun-mo, Minister of Trade, Industry and Energy. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced that Minister Sung Yun-mo visited the 'Comprehensive Export-Import Logistics Response Center' on the first floor of the Seoul Trade Tower at 11 a.m. on the 8th.

The center is a public-private joint organization composed of government ministries such as the Ministry of Trade, Industry and Energy, the Ministry of Oceans and Fisheries, and the Ministry of SMEs and Startups, related organizations such as KOTRA and the Small and Medium Business Corporation, trade associations, the Korea Shipping Association, HMM, and national shipping companies. It has been operational since the 3rd.

As ocean freight rates on the trans-Pacific route surged, a cross-ministerial system was established. According to the Ministry of Trade, Industry and Energy, the freight rate per FEU (40-foot container) on the U.S. West Coast route soared from $1,572 in January to $3,947 as of the 7th.

Center Director Kang Jang-jin presented the current status of the center's operations and future plans. The center is composed of a General Response Team, Transport Support Team, and Enterprise Support Team.

The main roles are ▲ grasping the status of vessel capacity supply and providing major shipping companies' operation plans ▲ receiving reports of difficulties and unfair trade practices from small and medium shippers ▲ additional vessel deployment ▲ allocation of cargo volume to small and medium shippers ▲ supporting freight rates for small and medium shippers, implementing government measures.

Since its opening on the 3rd, about 50 cases of difficulties have been received. Major issues included disclosure of vessel supply plans, resolving container shortages, considering alternative routes such as Southeast Asia, and providing real-time information. From next week, the center plans to strengthen the reception of difficulties through its website.

Minister Sung evaluated, "The center is the first case where shipowners and shipper-related institutions gather in one place to seek solutions to export-import logistics difficulties."

He added, "If the center thoroughly manages and addresses export-import logistics difficulties on the front lines of the export-import logistics field, it can greatly help improve the export conditions of our companies. I ask everyone to do their best to provide full support centered on the center so that the hard-won export vitality does not fade."