Gu Ja-yeol, Chairman of the Korea Federation of Small and Medium Business, "Government Support Needed to Resolve Logistics Difficulties for SMEs"

Inspection of Export Logistics Site at Korean Air Cargo Terminal, Incheon Airport

Koo Ja-yeol, Chairman of the Korea International Trade Association (left), is visiting the Korean Air cargo terminal at Incheon Airport on the 12th to receive an explanation about the status of air cargo shipments.
[Photo by Korea International Trade Association]

[Asia Economy Reporter Kim Heung-soon] On the 12th, Koo Ja-yeol, Chairman of the Korea International Trade Association, visited the Korean Air cargo terminal at Incheon Airport to inspect export logistics sites and listen to the logistics difficulties faced by small and medium-sized enterprises (SMEs).

Chairman Koo said, "Amid signs of cargo space shortages and rapid freight rate increases on major routes recently, I am grateful for the extension of the 'Emergency Air Cargo Export Logistics Support Project,'" and emphasized, "Continuous support from the government and related organizations is necessary this year as well to help SMEs overcome the global logistics crisis."

The TAC Index, a global air freight rate index, showed that the freight rate for the Hong Kong-North America route in January was $11.1 per kilogram, more than three times higher than before COVID-19. The prolonged disruption of maritime logistics has led to increased demand for air transport and instability in passenger aircraft belly cargo capacity, which are considered the main causes of the rise in air freight rates.

The Trade Association plans to continue the 'Emergency Air Cargo Export Logistics Support Project' until June, in cooperation with Korean Air, providing dedicated cargo space for SMEs on cargo flights from Incheon to Los Angeles, USA, to alleviate the air cargo logistics difficulties of SMEs.

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