Stevedoring rates hike to provoke tension between loading companies and liners

A confrontation between stevedoring companies in Inchon, and shippers and shipping liners is on the horizon as stevedoring companies increase rates. The stevedoring companies in Inchon sent shippers and shipping companies a notice regarding the 2001 stevedoring rates increase through the Inchon Harbor Transportation Association at the end of August. Stevedoring companies insisted that they would try to levy unpaid fees after June 7th when the government officially permits fee increases in the wake of rising difficulties.

In addition, "if the rates the government approved don't materialize, there could be failures in stevedoring," a stevedoring company warned.

These announcements caused a great deal of anger and resistance from shippers and shipping companies.

The Korean Shipowner's Association said that in the past it has been customary to contract on stevedoring rates below government permitted rates. "Under these sluggish economic situations raising stevedoring rates won't help to revive the national economy and may well worsen relationships between shippers, shipping companies, and stevedoring companies." The KSA added that it is still reasonable to look for a mutually acceptable solution through negotiations.