Martial Arts-Straits, Hold First 'Shipowner-Consignor Council' of the Year to Discuss Standard Contract Revision

Focused Discussion on Revising Standard Contracts to Establish a Sound Shipper-Carrier Contract Culture

On the morning of the 24th, Lee Jun-bong, Head of Logistics Services at the Korea International Trade Association, is speaking at the '2022 Seonhwaju Win-Win Council' held at Trade Tower in Samseong-dong.

[Asia Economy Reporter Park Sun-mi] The Korea International Trade Association (KITA), in collaboration with the Korea Shipping Association, held the first shipper-carrier win-win council of the year at the Trade Tower in Samseong-dong and focused on discussing revisions to the "Standard Long-term Transportation Contract" (hereinafter referred to as the Standard Contract), the association announced on the 24th.

About 10 participants, including government ministries and related organizations such as the Ministry of Trade, Industry and Energy, the Ministry of Oceans and Fisheries, export companies, shipping companies, and logistics experts, attended the council held that day to intensively discuss revisions to the Standard Contract aimed at establishing a sound shipper-carrier contract culture.

Since the second half of last year, KITA and the Korea Shipping Association have been working on partial changes to the contract. Based on the Commercial Act and other regulations, they are preparing revised clauses that require prior consultation between shipper and carrier if the carrier cannot provide the minimum contracted cargo space or if the shipper cannot provide the contracted volume to the carrier.

Furthermore, shippers and carriers using the Standard Contract can receive benefits such as additional points when selected as excellent shippers or carriers and corporate tax reductions. Shippers can secure stable cargo space, and carriers can secure regular transportation volumes, enabling joint response to the global logistics crisis.

Both organizations agreed to actively promote the widespread use of the Standard Contract and to continue communication to overcome the global logistics difficulties.

Lee Jun-bong, Head of Logistics Services at KITA, said, "The Standard Contract, first established in 2019, was written with some clauses favoring carriers, so shippers have continuously requested improvements," adding, "We will prepare a balanced contract to establish trust between shippers and carriers and strengthen the foundation for cooperation."