Trade Association Leads Efforts to Resolve Logistics Crisis for Exporting SMEs

Starting July, Cargo Consolidation and Transport Support with HMM, POSCO, Hyundai Glovis, etc.
148 SMEs, 492 TEU Container Volume, 210,000 Tons Bulk Volume

HMM Busan New Port Terminal
Photo by Yonhap News

[Asia Economy Reporter Kim Heung-soon] The Korea International Trade Association (KITA) is taking the lead in helping our export companies struggling with the logistics crisis.

KITA announced on the 11th that, to alleviate the difficulties faced by our export small and medium-sized enterprises (SMEs), it has cooperated with logistics companies and large corporations such as SM Shipping, HMM, Korea Marine Transport, POSCO, and Hyundai Glovis to support maritime transportation since July. So far, 148 SMEs have been supported, with container volumes reaching 492 TEU (1 TEU = one 6-meter container) and bulk cargo volumes totaling approximately 210,000 tons.

Steel product export company A, which had difficulty securing bulk carriers, succeeded in exporting with the cargo consolidation support from POSCO, which has long-term bulk carrier contracts with major national shipping companies.

A company representative said, "Due to the nature of steel products, securing bulk carriers was essential, but the ongoing logistics crisis prevented us from loading cargo for several months. We considered using container ships as an alternative to bulk carriers, but special containers were required, and we had to bear high additional costs. Also, since the volume was relatively small, shipping companies were reluctant to transport, which posed another challenge."

He added, "At that time, with the support of KITA and POSCO, we were able to export in a timely manner and receive transportation services equal to those of large corporations, which significantly enhanced our export competitiveness."

Company B, which exports parts to global automobile makers, also experienced a two-month export delay due to failure to secure container ships on time. However, with KITA's help, they loaded cargo onto Hyundai Glovis's car carriers and exported their products.

Bidet export company C saw a surge in orders as American consumers began hoarding toilet paper amid the spread of COVID-19, increasing the use of bidets. Despite this, they struggled to secure vessels and had to store products in warehouses and parking lots. Then, through KITA, they connected with SM Shipping, which provided dedicated cargo space for SMEs on its container ships, enabling them to export their products.

Lee Jun-bong, head of KITA's Logistics Service Office, said, "We will continue to prepare additional support measures for our companies through the public-private joint export-import logistics comprehensive response center, operated jointly with government ministries such as the Ministry of Trade, Industry and Energy and the Ministry of Oceans and Fisheries."

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