New Vessel Added for Used Car Exports at Incheon Port... '50% Reduction on Vessel Entry/Exit, Berthing, and Anchorage Fees'

[Sejong=Asia Economy Reporter Joo Sang-don] The government will add new vessels and establish a related port fee reduction system to support the used car export industry at Incheon Port, which has been facing difficulties due to recent increases in maritime freight rates and a shortage of loading space.

On the 20th, the Ministry of Oceans and Fisheries announced that by the end of this month, it will secure separate space for loading export used cars on a total of about 10 car carriers, including three 50,000-ton or larger car carriers that had previously allocated space mainly for new cars, enabling the export of more than 12,000 used cars per month.

Due to the impact of the COVID-19 pandemic, used car exports through Incheon Port until October this year decreased by 19.8% compared to the same period last year, totaling about 273,000 units. Recently, some car carriers that had not operated for a long time resumed partial operations; however, most shipping companies have suspended vessel operations for a certain period and disembarked crew members to reduce fixed costs amid a sharp drop in demand. As a result, despite the recent recovery in demand for Korean used cars, the shortage of shipping space continues to cause difficulties for the related industry.

In response, the Ministry of Oceans and Fisheries and Incheon Port Authority held a meeting with related industry and shipping company representatives on the 3rd to discuss support measures, and have prepared specific support plans to be implemented now.

Along with the addition of new vessels, the Ministry decided to temporarily reduce port facility usage fees to actively encourage this effort. The temporary reduction applies to car carriers and container ships newly deployed at Incheon Port for export support purposes, with a 50% reduction in vessel entry and exit fees, berthing fees, and anchorage fees from December 1, 2020, to February 28, 2021. The Ministry of Oceans and Fisheries and Incheon Port Authority plan to decide on extending the period later, considering the effects of the temporary reduction system.

Kim Jun-seok, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "This measure is the result of proactive administration and win-win cooperation by the port authorities to resolve difficulties raised by local businesses regarding used car exports. We will continue to communicate with local communities and resolve difficulties through cooperation between the field and the government by implementing customized port logistics policies that consider regional and industrial characteristics."

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