US-UK Airstrikes on Houthi Bases Increase 'Middle East Maritime Logistics' Uncertainty... Ministry of Industry Recommends Route Changes and Temporary Vessel Deployment

by Ju Sangdon

Published 12 Jan.2024 16:00(KST)

Updated 24 Jan.2024 07:34(KST)

3rd Export Emergency Response Team Meeting

The Ministry of Trade, Industry and Energy held an emergency export countermeasure meeting on the 12th to review the impact on export-import logistics and discuss future response plans, as geopolitical uncertainties in the Middle East, including the Red Sea, have expanded due to airstrikes on the Houthi rebel bases in Yemen by the United States and the United Kingdom, and Iran's seizure of a US oil tanker.

As a result of the review meeting, it was confirmed that, so far, the shipment of export goods and the import of energy such as oil and natural gas are proceeding normally. However, given the increased uncertainty caused by the recent US and UK airstrikes on the Yemeni rebel bases, the government decided to carry out more meticulous monitoring and to steadily implement logistics support measures such as the temporary deployment of vessels to minimize the impact on exports.

Kim Wanki, Director of Trade and Investment at the Ministry of Trade, Industry and Energy, is presiding over the "Emergency Situation Review Meeting on Maritime Logistics in the Middle East" held via video conference on the 12th at the Korea Trade Insurance Corporation's main conference room in Jongno-gu, Seoul.

To this end, under a close response system with related ministries, KOTRA, the Korea International Trade Association, and other related organizations, the government will prioritize the safety of Korean vessels and export goods by actively recommending route diversions to cargo owners and national shipping companies. In preparation for a possible shortage of vessels, temporary deployment of ships will be steadily implemented between mid-January and early February, including one 11,000 TEU-class container ship on the Northern Europe route and three 4,000?6,000 TEU-class container ships on the Mediterranean route, as well as providing vessels dedicated to small and medium-sized enterprises. Additionally, considering the trend of rising maritime freight rates, the government will continue to review phased support measures such as export vouchers.

Kim Wanki, Director of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, stated, "As it is difficult to predict the future developments due to the deepening uncertainties in the Middle East region, we plan to do our best to resolve difficulties faced by export companies by conducting more meticulous monitoring and establishing an organic cooperation system among related ministries and organizations to minimize negative impacts on exports and energy supply."