Container route between Korea and China fully open by 2009

Korea and China concluded negotiations from November 8 to 9 to complete the opening of trade routes between the two countries at the 13th Korea and China Shipping Conference in Dalian, China.

First, container routes will be fully opened by 2009. Car ferry routes will open gradually 3 years after container routes fully open.

Also, the two countries concluded that they would expand employing container vessels in car ferry routes between all Korean ports including Incheon and Pyongtaek Ports and Northern Chinese ports little by little until the route openings are complete.

They agreed upon mutually complementary measures for 3 years from now to prevent confusion in the shipping market and preempt over competition when routes between China and Japan open.

These principles for route opening will tremendously influence shipping and port business participation in the routes as this is the first agreement reached between the two since the Korean and China Shipping Conference first opened in 1993.

They agreed that it is natural to freely open shipping trade under the WTO system, and that shipping companies from the two countries would adjust themselves to the new conditions by opening gradually over 3 year, giving them ample time for advance preparation.

For car ferry routes, they agreed that more time is needed to prepare. One, that there are efforts to increase the trades between the two countries as well as human and cultural interchange, and second, that car ferry routes have a higher costs than container routes. They concluded that the smoothest path to open car ferry routes would be for them to follow container route openings.

Container service switching to car ferry routes was limited after 10 container vessels were entered into 7 car ferry routes in 2003. But they agreed with that additional container vessels could be launched into car ferry routes from next year. A private organization will be enlisted to conclude details including fixing routes and vessel numbers.