POSCO Develops Logistics System for Sharing Cargo with Small and Medium Customers

[Asia Economy Reporter Park Soyeon] POSCO has created an online logistics system that allows real-time sharing of vessels to help small and medium-sized customers who are struggling to secure export ships.

POSCO announced on the 14th that it will start operating the "Consolidated Shipping System" this month, which enables customers to load small quantities of cargo together with POSCO's own shipments.

Small and medium-sized customers face difficulties in securing vessels in a timely manner due to their small export volumes.

As a result, it is often difficult to meet delivery deadlines, and they frequently have to pay relatively high freight rates, which lowers their export competitiveness.

Although vessel sharing (consolidation) was possible before, small and medium-sized customers had to frequently check and request shipping schedules from large shippers or shipping companies, which was cumbersome.

The consolidated shipping system developed by POSCO this time allows customers to conveniently search and apply for available consolidated vessels in real time online.

Since POSCO began piloting this system in September last year, 42 small and medium-sized customers have consolidated 56,000 tons, resulting in a logistics cost reduction of approximately 1.1 billion KRW.

Opilseok, CEO of Hankum Co., Ltd., which processes and exports steel products, said, "By using the consolidated shipping system, we can receive transportation quality services at the same level as POSCO at a lower price than before. We can ship regularly once or twice a month, and even with small shipment volumes, consolidation is possible, enabling stable and competitive exports."

POSCO expects that the consolidated shipping system will enhance the competitiveness of the entire logistics value chain, including small and medium-sized customers, POSCO, and shipping companies.

Shipping companies increase their sales by attracting additional cargo and reduce transportation costs by not having to move to other terminals to fill insufficient cargo volumes. POSCO can minimize demurrage charges caused by cargo quantities falling short of contracted amounts.

Before the official launch of the consolidated shipping system, POSCO plans to visit customers directly to provide training on system usage and consulting related to logistics solutions.

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