Courier Industry, Shipping Fee Realignment... Online Shopping Delivery Charges Inevitably Increase

Lotte to Raise Prices by 150 Won from the 15th
CJ and Hanjin Also Expected to Increase Around 200 Won
Ultimately Leading to Consumer Burden

Three days before the Lunar New Year holiday, on the 8th, courier logistics piled up at the Seoul Complex Logistics Center in Songpa-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Dongwoo Lee] Starting with Lotte Global Logistics (Lotte Courier), major domestic courier companies are consecutively raising their delivery fees. This measure aims to reduce labor costs associated with the deployment of parcel sorting personnel, and the fee increase primarily targeting corporate clients is expected to ultimately lead to higher 'shipping costs' for consumers.

According to the industry on the 8th, Lotte Global Logistics recently distributed guidelines to nationwide agencies stating that from the 15th, the courier fare per shipment for corporate clients will be raised by an average of 150 KRW. Accordingly, the basic courier fare for parcels with a box length of 80 cm or less and weight of 5 kg or less will increase from 1,750 KRW to 1,900 KRW. However, customers with existing contracts will have the increased rates applied after their contracts expire.

CJ Logistics and Hanjin Courier have also begun the process of raising courier fees. CJ Logistics is currently conducting internal reviews for the fare increase, and the industry expects the increase to be around 200 KRW for new shippers. A Hanjin Courier official explained, "We are working on fare adjustments targeting some low-rate corporate clients," adding, "We are strengthening internal consultations."

The courier industry argues that an additional annual cost of 50 billion to 75 billion KRW is incurred due to the deployment of sorting personnel, making fare increases inevitable. Previously, the industry, in consultation with the government, recruited about 6,000 dedicated sorting staff to reduce the workload of delivery drivers. The industry analyzed that a 1.5 times increase in courier fees is necessary to improve sorting facilities and environments as proposed by the government.

There are concerns that the fare increase targeting corporate clients could lead to higher shipping costs for consumers. The increase in courier fees for corporate clients may eventually result in higher product prices and shipping fees in the long term.

An industry official said, "Over the past 10 years, the volume of parcels in the courier market has more than doubled, but the average unit price has actually decreased by about 10%, from the 2,500 KRW range to the 2,200 KRW range," adding, "It is time to adjust fares realistically to improve the treatment and working conditions of delivery drivers."

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