The Korea International Trade Association (KITA) yesterday asked HMM and eight other domestic container carriers to continue reserving slots for SME exporters on 22 shipping routes at preferential rates.
The call is in response to the continued freight volatility caused by the Red Sea diversions and now boosted by the US Trade Representative’s proposed levies on Chinese-built ships calling at US ports.
KITA has expressed concern that the proposal, which could mean port fees of up to $1.5m per call, could inflate freight rates again, as liner operators could switch such vessels out of transpacific routes.
In response, HMM will reserve 1,000 teu of slots for SME exporters every week this year on 14 transpacific and Asia-Europe routes.
A spokesperson for the carrier said: “This year, we are accepting applications for container space allocation support for SMEs. Last year, we dedicated the same amount of space for shipments bound for the US and Europe.”
Eight South Korean feeder operators, including KMTC Line, Sinokor, and Heung-A Line, will also make similar arrangements on eight intra-Asia and India-bound lanes, earmarking 420 teu for SMEs every week.
KITA is also encouraging SME exporters to sign long-term shipping contracts with HMM to be assured of slots for transpacific and Asia-Europe routes. To reflect changes in spot rates, the preferential rates will be adjusted semi-annually for transpacific and Asia-Europe routes, and quarterly for intra-Asia and India-bound.
KITA’s head of trade development, Jung Hee-chul, said: “We expect these will help alleviate the burden of logistics costs arising from the uncertainty of sea freight.”
In response to US President Donald Trump’s protectionist stance, KITA chairman Yoon Jin-sik said, at the association’s AGM on Wednesday, that trade and economic ties would be developed with Central Asia, South America and South-east Asia.
The association plans to open overseas offices in Vietnam, Brazil, and South Africa, this year, adding to those in the US and Poland.