News
The government of South Korea launched a new system in April, publically announcing container freight rates with the aim of stifling excessive competition among carriers and stabilizing freight rates. The system is working effectively to stabilize freight rates for short-sea services in Asia, according to the Korea Shipowners’ Association (KSA), which conducted a survey in August and September.
In services to and from Japan, freight rates have recovered by US$20 per TEU to $30 per TEU since the system was commenced, the KSA said. There have been no zero or negative freight rates on the trade to and from China, where fares had improved by approximately $30 per TEU. Container services to and from Southeast Asia had enjoyed an increase in rates of $30 per TEU or even more.
The KSA indicated that it will further stabilize freight rates by unveiling up to 98% of the freight rates for services to and from Japan and 70% or more of those for services to and from China and Southeast Asia. The association added that it will impose a fine. If a carrier violates the system, a fine of $100 per TEU will be levied, it said.
