KSA & SA Agreeded to Cooperate in Freight Rates

The Korea Shipper' Association, a representative of trade companies an
d the Korea Shipowner' Association, a representative of shipping lines
, decided to stabilize freight rates in the Asia/North America trade w
hile negotiations were under way between the shippers and shipowners f
or the Service Contract concerning the streamship charges.
Many small- and medium - sized firms have experienced difficulty with
unprofitability in exports because of the dramatic general rate increa
se (GRI) last year. Shippers insisted this year' GRI has no cause to i
ncrease and that it must be controlled. They also claimed rate increas
es should be restrained for the shippers to take into account worsenin
g international trade conditions and weakening competitive powers.
Accordingly, the result of recent discussion among Shipper' Associatio
n, Shipowner' Association, Shipping Lines and Shippers as well as aut
horities of the Ministry of Maritime Affairs and Fisheries (MOMAF) and
the Ministry of Commerce, Industry and Energy(MOCIE), was that there
will be no sharp freight rate increases in this year so the financial
burden for small- and medium- sized firms will decrease.