First Press Conference Since Taking Office
Jungseok Park, chairman of the Korea Shipping Association, argued that the domestic shipping industry faces significant risks due to the tariff war between the United States and China, and emphasized the need to foster the shipping industry as a national strategic sector.
At his first press conference since taking office, held at the Shipping Building in Yeongdeungpo-gu, Seoul on the 28th, Park stated, "The tariff war is causing constant fluctuations in import and export cargo trends both domestically and internationally, and increasing uncertainty in the shipping industry."
Park Jungseok, chairman of the Korea Shipping Association, is speaking at a press conference held at the Shipping Building in Yeongdeungpo-gu, Seoul on the 28th. Photo by Marine Journalists Association
Park pointed out, "The Donald Trump administration in the United States continues efforts to secure the maritime supply chain by acquiring 250 strategic security vessels and training maritime officers, in order to keep China's shipping and shipbuilding industries in check," adding, "Shipping is also emerging as a strategic and essential industry, similar to semiconductors."
He continued, "Although Korea is essentially an island nation with a shipping dependency rate of 99.7% for import and export cargo, there is still insufficient consensus on its importance. To expand the logistics supply chain, we will reform the essential vessel system and work to increase the number of strategic security vessels."
The United States Trade Representative (USTR) decided on the 17th (local time) to impose port entry fees on Chinese shipping companies, shipping companies operating Chinese-built vessels, and car carriers built abroad. Starting October 14, Chinese-operated or Chinese-owned vessels will be charged a port entry fee of $50 per ton, which will be increased annually to reach $140 per ton by 2028. In addition, vessels operated by companies from countries other than China will be required to pay $18 per ton if the ship was built in China.
While there have been predictions within the shipping industry that domestic shipping companies, which have a low proportion of Chinese-built vessels, could benefit from this, Park took a negative view in the mid- to long-term.
He said, "Shipping companies can respond by shifting Chinese-built vessels from North American routes to European routes. However, if tariffs reduce trade between the United States and China, cargo volume will decrease and the market will inevitably stagnate, leading to changes in shipping market conditions." The Korea Shipping Association is discussing response measures through an emergency task force on shipping and logistics trade issues with the Ministry of Oceans and Fisheries.
Park emphasized, "We need to expand fleets built at Korean shipyards and operated by Korean shipping companies, and develop strategies to strategically nurture and maintain our shipping industry."
He added, "We will push to reform the essential vessel system, increase the strategic security fleet from the current 88 vessels to around 200, and prepare measures to expand government support so that vessels can be utilized in times of emergency."
After graduating from the College of Engineering at Seoul National University, Park entered the shipping industry in 1992 by joining KCTC. He became CEO of Korea Marine Transport Co. in 2007, and served as the third chairman of the Korea P&I Club in 2016. He is the eldest son of the late Park Hyunkyu, honorary chairman of Korea Marine Transport Co.
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