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Trucks parked at the Western Truck Terminal in Yangcheon-gu, Seoul, on November 22 last year.
[Photo by Hyunmin Kim kimhyun81@]

[Asia Economy Reporter Moon Chaeseok] Even after the sunset of the Safe Freight Rate System, it was found that shipper companies were requested to pay freight rates that were the same as before (75.4%) or higher (7.4%). Only 5.7% reported receiving discounted freight rates.

The Korea International Trade Association (KITA) announced on the 12th the results of a survey on responses after the sunset of the Safe Freight Rate System conducted among 174 shipper companies. The survey included 144 small and medium-sized enterprises, 25 mid-sized companies, and 5 large corporations.

Regardless of company size, it was found that the existing freight rates were applied even after the system sunset. Only 6% of small and medium-sized enterprises and 12% of mid-sized companies responded that they received discounted rates through bidding compared to before.

Many shipper companies (34.1%) believed that freight rates should be left to market supply and demand going forward. The voice that freight rates should be determined by the market rather than the government was stronger.

Following that, 28.4% said that a freight rate standard should be created and only recommended, and 27.8% said that, as before, freight rates for cargo truck owners and transportation company margins should be set separately and paid as is.

Jung Manki, Vice Chairman of KITA, said, "After the system sunset, some shippers are raising transportation freight rates, and shippers, transportation companies, and truck owners are showing signs of adapting well to the market."

He added, "The government should not artificially set prices to distort the market and introduce systems that reduce the efficiency of the freight transportation market. Policies that reform the market’s multi-tier structure to reduce brokerage fees between truck owners and shippers should be strengthened."