Inland container carriers hike rates by 7.3 %

Truckers raised inland container transportation rates in six years.
The Korea Freight Forwarding Association revealed on Nov. 24 that transportation costs increase including tough inland traffic situations and oil price hikes caused inland container transport charges to go up. Transportation industry said that there would be 7.33% rise on average, with some variation depending on distance.
For one-way freight charges between Seoul and Busan, 20 Foot Equivalent Unit (TEU) cargoes will be 478,000 won and 40 Foot Equivalent Unit (FEU) will have different charges depending on the place of origin. 40 Foot Equivalent Units from the area above the Han River will cost 541,000 won up to the container yards in Busan. However, 40 Foot Equivalent Units moving below the Han River are 10,000 won cheaper, 531,000 won.
The Inland Container Transportation Tariff has been frozen since the last two increases in 1996 and 1998 after the government led voluntary competition amongst transportation companies.
However, as driver's real charges rose by 20,000~30,000 won during the trucker' strikes last August and September and costs in transportation hiked as well, the Ministry of Construction and Transportation allowed the rates hike companies and truckers requested.
An industry Insider said that real rates increases were applied from Dec. 1st and shippers also accepted the rates hike in general because the rates didn ? climb too much.
He also said that even though transportation companies need a 10% rates increase to reflect the driver's charge increase after the trucker? strike, they tried to limit the rise to 7% out of consideration for shippers. Because larger shippers have enjoyed a 20-30% rates discount under the voluntary competition system, they wouldn ? mind the 7% rates increase, he added. One small shipper complained that small and mid-sized shippers are being sandwiched by rates increases in ocean freight rates and inland transportation charges.