Ruling Party and Government, Cargo Transport Normalization Plan
Annual Publication of Freight Rate Guidelines for Shippers and Carriers
[Asia Economy Reporter Minyoung Kim] Going forward, transportation companies that do not engage in legitimate transportation business but rent out commercial truck license plates to truck drivers and only collect usage fees will be eliminated. The existing Safe Freight Rate System will be abolished and replaced with a Standard Freight Rate System, which will be temporarily operated for three years until 2025. Additionally, to improve the income of truck drivers vulnerable to fuel price volatility, a standard contract linking freight rates and fuel prices will be introduced.
On the 6th, the government held a party-government consultation meeting with the People Power Party and announced the "Measures to Normalize the Freight Transportation Industry," which includes △ improving the structure of the freight transportation industry △ fundamentally improving the truck Safe Freight Rate System △ improving the treatment of truck owners △ and substantially strengthening truck traffic safety.
First, the government decided to significantly reform the deeply rooted "Jibip system" in the truck transportation market. The government plans to eliminate non-working transportation companies, i.e., specialized Jibip companies, that do not conduct legitimate transportation business but rent out commercial truck license plates to truck owners and only collect usage fees. Individual transportation business permits will be issued to truck owners who do not receive a certain level of workload from transportation companies, and transportation companies that do not provide freight volume will face reduction measures.
The Safe Freight Rate System for trucks will be abolished and replaced with the Standard Freight Rate System. Similar to the existing Safe Freight Rate System, the Standard Freight Rate System will mandate freight rates (safe consignment freight rates) between transportation companies and truck owners, but freight rates (safe transportation freight rates) between cargo owners and transportation companies will not be mandatory and will be announced annually as guidelines. The Standard Freight Rate System will apply only to cement and container items, the same as the existing Safe Freight Rate System, and will be temporarily operated for three years until 2025. Afterward, the results of the system operation will be analyzed to discuss whether to continue it.
Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated, "We will boldly abolish the unreasonable practices and bad customs deeply rooted in the freight transportation industry to ensure that incidents like collective transportation refusals never happen again."
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