KNFC activates its role to stabilize Korea/Japan trade

The Korea Nearsea Freight Corporation (KNFC) started to neutrally supervise Korea/ Japan trade to stabilize freight rates in this route.

It held a presidential meeting to prepare total counter measure methods, discussing rate recovery methods.

From this coming December, KNFC would like to intensify Neutral Body (NB), a self-supervisory organization, employing a few supervisory officials. Excessive vessel regulations are under deep consideration.

Shipping markets this year have a different outlook, depending on routes. In the case of ocean-going trade such as that bound for North America and Europe, freight rates are recovered with the regulation of vessel supply. Nearsea trade, however, in the Intra-Asia region, mainly Japan, China, and Southeast Asia, show rates decreasing.

Korea/Japan trade has kept stable trade routes with a co-operation system, pooling systems and endeavors to save expenses.

After the Asian currency crisis, rates decreased due to competition from reduced cargo picking-up. As economical vessels replace old ones, surplus space shows up due to overcapacity. Operating profits kept in the red as oil prices hit a high and operating costs increased.