Despite Logistics Challenges... KOTRA Overseas Joint Logistics Centers Expected to Export $3 Billion This Year

More than 1,700 Small and Medium-sized Enterprises Exported This Year

Photo by Yonhap News

[Asia Economy Reporter Han Yeju] Up to September this year, small and medium-sized enterprises (SMEs) and mid-sized companies exported over $2.2 billion through KOTRA's overseas joint logistics centers. This figure represents a 54% increase compared to the same period last year. KOTRA expects exports to reach $3 billion from about 1,700 companies by the end of the year.

On the 16th, KOTRA announced that it operates 238 joint logistics centers dedicated to SMEs and mid-sized companies in 78 countries worldwide in partnership with logistics companies. This is to enable exporters without their own warehouses overseas to store cargo, handle customs clearance, returns, labeling, packaging, and even marketing such as online sales.

KOTRA has been providing 190 TEUs (1 TEU equals one 20-foot container) of weekly shipping space across 14 global routes and 45 ports exclusively for SMEs and mid-sized companies. Up to October this year, 180 shipments totaling 1,019 TEUs were used. Since May, KOTRA, together with Korean Air, has been offering a total of 12 tons of cargo space weekly on flights to Narita and Frankfurt exclusively for SME export cargo, along with discount benefits. Up to October, 7,184 kg of cargo was exported.

A KOTRA official explained, "Since the pandemic, the main focus in the logistics industry has been digitalization of logistics and preparation for supply chain disruptions. This is why KOTRA is actively adopting digital logistics technologies and supporting supply chain logistics."

KOTRA also provides a big data-based cargo tracking service that allows real-time monitoring of cargo routes and locations. They offer free 'on-site logistics consulting' to help reduce logistics costs and discover forwarders.

Additionally, KOTRA enhances visibility of logistics status and helps companies predict congestion trends at overseas ports. They quantify the weekly average daily congestion at 70 ports worldwide, including Shanghai and LA, and distribute this data monthly to 30,000 companies.

Yoo Jung-yeol, President of KOTRA, stated, "We are focusing on identifying and resolving areas where logistics flow is not smooth to prevent export difficulties caused by logistics. We will continue to expand overseas joint logistics centers and strive to enhance our companies' export competitiveness through smart logistics support projects."

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