Meeting on Safe Freight Rates... Confirming Differences in Positions Between Cargo Owners and Hwamyul Solidarity

Cargo Solidarity “Safety Freight Rate Sunset Clause Must Be Abolished”
Ruling Party “Decision on Abolishing or Extending Sunset Clause After Performance Analysis”

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Hyun-ji] On the 17th, the People Power Party held a meeting with truck owners and cargo owners and announced that they would decide whether to abolish or extend the sunset clause of the Safe Freight Rate System after analyzing its performance.

Lee Heon-seung, a member of the People Power Party and chairman of the National Assembly Land, Infrastructure and Transport Committee, stated at a meeting for the win-win development of the logistics industry held at the National Assembly in Yeouido, Seoul, that “an analysis of the achievements over the past three years regarding the Safe Freight Rate System should be conducted first, and then there needs to be a discussion on whether to completely abolish the sunset clause or to wait and see.”

At the meeting, the differences in positions between the truck owners and cargo owners were not narrowed. The truck owners demanded the abolition of the sunset clause of the Safe Freight Rate System. Lee Bong-ju, chairman of the Cargo Solidarity Union, said, “We postponed the strike because we agreed to abolish the sunset clause,” and protested strongly wearing a red headband, saying, “Unfortunately, I heard that Representative Lee Heon-seung is preparing to propose an extension, not abolition, of the sunset clause of the Safe Freight Rate System.”

Chairman Lee argued for the necessity of the Safe Freight Rate System, saying, “The Safe Freight Rate System is a system that holds cargo owners responsible for appropriate and fair freight rates,” and “The extension of the sunset clause raised by some is nothing more than a painkiller, not a cure.”

On the other hand, the cargo owners argued that the Safe Freight Rate System increases the burden on companies. Lee Gwan-seop, vice chairman of the Korea International Trade Association, claimed, “I think the Safe Freight Rate System has restricted market functions. It has rapidly increased logistics costs and caused side effects that weaken global competitiveness.” He emphasized, “The Safe Freight Rate System, which tries to solve the safety of cargo workers through freight rates while ignoring the fundamental structure of the cargo and transportation market, needs to be improved.”

After the meeting, Policy Committee Chairman Sung Il-jong told reporters, “We will gather more opinions and work with the committee members to resolve the issue,” adding, “The original organization must be formed. There are about six months left.”

Regarding Representative Lee’s proposal to extend the sunset clause, he said, “It is true that we are reviewing the bill, but it has not been submitted. We have listened to the opinions of truck owners and cargo owners, and we will always keep the door open to listen to opinions and negotiate,” requesting continuous dialogue.