KOTRA to Increase Dedicated Shipping Capacity for SMEs... 14 Routes and 45 Ports of Call

[Asia Economy Reporter Jin-ho Kim] KOTRA provides weekly 190 TEUs (equivalent to one 20-foot container) of shipping space on 14 global routes with 45 ports of call exclusively for export SMEs. This is to help export companies respond flexibly to changes in the logistics environment.

KOTRA has been offering 70 TEUs weekly of shipping space on three North American and Northern European routes secured in advance by global logistics companies exclusively for SMEs since early this year. However, as demand increased in other regions, the routes have been expanded to include the Mediterranean, Middle East, South Asia, Southeast Asia, South America, and Africa. The shipping space has also been increased to more than double the initial 70 TEUs.

Companies using the SME-exclusive shipping space can also utilize overseas joint logistics centers operated by KOTRA in cooperation with logistics companies worldwide. KOTRA operates joint logistics centers in 233 locations across 79 countries for SMEs that find it difficult to establish logistics centers overseas. As of May, 1,238 SMEs receive logistics fulfillment services?including warehousing, packaging, delivery, returns processing, and customs clearance?as well as export marketing services. Last year, the number of companies using KOTRA’s global joint logistics centers increased by 20% compared to 2020, while exports rose by 118% to $2.5 billion.

Recently, KOTRA has been making every effort to proactively respond to changes in the logistics environment. In cases where logistics difficulties arise due to the Ukraine crisis and China’s COVID-19 lockdowns, companies can temporarily store cargo at KOTRA joint logistics centers in desired regions and receive cargo transportation services to other areas. KOTRA supports up to 7 million KRW per company for the associated costs.

Amid congestion at ports in the southwestern United States, 52 SMEs using the northwest bypass route received KOTRA’s services to meet delivery deadlines. Starting from the 15th of this month, KOTRA, together with Korean Air, will provide SME-exclusive cargo space and discounted rates of up to 6 tons weekly on the Incheon-Frankfurt cargo flight route.

KOTRA plans to additionally provide information that accurately diagnoses congestion situations at overseas ports and predicts trends through AIS (Automatic Identification System) and big data, based on public-private collaborative efforts.

Yoo Jung-yeol, President of KOTRA, said, “Reducing logistics burdens and responding flexibly to changing circumstances are prerequisites for export growth. We will strive further to establish a comprehensive overseas logistics support system without blind spots.”

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