Courier Industry Decides Not to Raise Rates at the Beginning of This Year

Hanjin and Logen Parcel Rates Frozen for First Half
CJ Logistics and Lotte Also No Increases for Now

The courier industry, which had raised fees earlier this year to reflect increases in fuel costs and minimum wages, has decided to freeze rates for the time being.

According to the industry on the 16th, Hanjin Courier and Logen Courier plan to keep their rates unchanged in the first half of this year. CJ Logistics, Lotte Global Logistics, and Korea Post parcels are also reported to have no plans to raise fees for the time being. Convenience store courier services will also maintain their existing rates for now.

Originally, the courier industry intended to raise fees by around 2.5% in line with this year's minimum wage increase, but decided to postpone the hike in the spirit of mutual growth.

In fact, the courier industry has typically raised fees at the beginning of the year. Early last year, based on corporate customer courier fees, CJ Logistics raised rates by an average of 122 KRW, Hanjin Courier by an average of 3%, and Lotte Global Logistics by up to 17.85%. In February last year, GS25 also increased its half-price courier fees by 200 to 300 KRW depending on weight.

However, the courier industry maintains that a realistic adjustment of average fees is necessary. Currently, the average fee for one parcel in South Korea is around 2,200 to 2,300 KRW, which is relatively low compared to FedEx and UPS in the U.S. (15,000 KRW), Yamato and Sagawa in Japan (5,500 KRW), and SF Express in China (2,900 KRW).