2001-12-06 10:00

Shipping associations consolidated Nov. 22

The International Shipping Agencies Association of Korea (ISAAK) and the Korea Local Shipping Agencies Association (KLSAA) were legally merged November 22 as the curtain dividing local shipping agencies and international shipping agencies was removed.

The Ministry of Maritime Affairs and Fisheries (MOMAF) announced Article 8 of the ordinance, which stated that the division of shipping associations would be de-legislated and put into force on November 22 as President endorsement. From November 22, shipping associations are regarded as one category.

However, as regulations containing specific unification procedures are not yet complete, the matter will most likely be resolved next month when the regulations are expected.

The actual bodies to handle the matter, ISAAK and the KLSAA have not yet publicly reacted to the ordinance. As a matter of fact, the regulations will decide what the associations do. Consolidation of the associations will require that they handle new executive board and positions, membership registration, and asset handling.

A related official in the international shipping industry said, "Everybody who is qualified can be involved in shipping agencies. This complex amalgamation is essentially frivolous." Others worried that the unification of the shipping associations may cause excessive competition among companies.
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