Korea~Japan trade introduces MGL

Korea-Japan trade decided to introduce MGL (Minimum Guide-Line) to secure minimum rates in Korea-China and Southeast Asia trades.
Business insiders analyzed that shipping companies in costal lines are introducing the MGL to hike rates that resulted from excess competition.
The KNFC (Korean Nearsea Freight Conference) announced that shipping companies in Korea-Japan trades would introduce the MGL (Minimum Guide-Line) from November 15 that would drop a range of existing discount rates and standardize tariffs agreed upon with the Korea Shipper? Association.
To this, the KNFC plans to carry through with post-management for early troubleshooting and successful operation of the system. The committee also agreed to use a variety of service networks in Korea-Japan trades while trying to restore rates among member companies, initially relying upon good faith and cooperation for the recovery.
In spite of a jump in charter fees and high oil prices, shipping companies in costal lines are suffering deficits because of low rate competition and excessive freight space. Meanwhile shipping companies in ocean lines like to the Americas and Europe are succeeding in lasting rates restoration through rapid increases in import-export cargoes and adjustments for surplus freight space.
CEOs of companies in costal lines voiced their opinions over rates restoration to the staff of each company.
Each shipping company is trying to protect their interests as they have suffered from shipping at rates lower than any other when compared to operating cost for shippers?and freight forwarders?cargoes.
One official from a shipping company operating in Korea-Japan trades said, ?e request shippers?understanding in connection with the MGL introduction,?and added, ?omestic shippers will have difficulty in obtaining stable services from foreign shipping companies if the local shipping companies in Korea-Japan trades pull out because of the low rates.