Chairman Koo Ja-yeol Visits Site, Pledges Efforts to Resolve Logistics Issues for Export Companies

Checking the Status of Export Company Maritime Transport Support Project at POSCO Pohang Steelworks

On the 20th, Koo Ja-yeol, Chairman of the Korea International Trade Association, visited the small and medium-sized enterprises' cargo consolidation and transportation site at the POSCO Pohang Steelworks dock in Pohang, Gyeongbuk, to inspect the status of maritime transportation support projects for export companies. (Photo by Korea International Trade Association)

[Asia Economy Reporter Lee Hye-young] On the 20th, Koo Ja-yeol, Chairman of the Korea International Trade Association (KITA), visited POSCO Pohang Steelworks to inspect the status of maritime transport support projects for export companies.

KITA and POSCO Terminal have been loading bulk cargo from small and medium-sized enterprises (SMEs) into the unused space on POSCO Terminal vessels since July last year to support Korean export companies facing logistics difficulties after the COVID-19 pandemic. Typically, bulk cargo is transported by tramp ships, but POSCO has signed long-term contracts for regular shipping services, allowing SMEs to secure vessels stably and systematically while benefiting from favorable freight rates.

Chairman Koo stated, “Co-prosperity between large corporations and SMEs is the solution to overcoming logistics difficulties,” and added, “I heard that POSCO Terminal plans to secure additional shipping capacity and strengthen overseas logistics infrastructure this year, and KITA will also support efforts to help more companies receive assistance.”

On the same day, Chairman Koo held a meeting with companies that received bulk cargo loading support to directly hear their satisfaction and any inconveniences. DKC, a stainless steel export company, expressed gratitude, saying that they were struggling with high freight rates using container ships due to difficulty securing bulk carriers, but overcame the crisis thanks to this support. SeAH CM, a steel sheet export company, also emphasized the need for the system, stating that this support made bulk cargo export possible.

However, export companies raised concerns about the heavy burden of special packaging costs for bulk cargo and requested government and related agencies’ support in this regard. Chairman Koo responded, “We will continue close cooperation with the government to expand corporate support and resolve logistics difficulties.”

Earlier, on the 12th, Chairman Koo also visited the Korean Air Cargo Terminal at Incheon Airport to check the status of air transport support projects. KITA is collaborating with Korean Air to provide dedicated loading space for SMEs on cargo flights operating from Incheon to Los Angeles through the ‘Emergency Air Cargo Export Logistics Support Project.’