KNFC launches investigation of vessels below standard

Recently Korean shipping companies running in Korea and Japan trade have been exposed to various difficulties, such as the won depreciation's against the dollar, sharply rising international oil prices due to OPEC (Organization of Petroleum Exporting Countries) agreements to cut the supply, vessel operating cost increases, and shipping cargo decreases due to the domestic economy slowing down.

The Korea Nearsea Freight Corporation, which has been investigating vessels below standards for the last ten years, revealed that it kicked off an investigation to prevent foreign vessels that don't meet standards from spoiling the trade, and to improve competitiveness for small and mid sized Korean shipping companies in Korea and Japan trade.

At present, vessels under standards currently operating in the Korea and Japan trade are mostly second hand vessels purchased from Japan and Hong Kong at dirt cheap prices, with Vietnamese and Honduran flags of convenience put on them. These vessels are deteriorating rates with cheap operating costs and dumping prices. They also employ unqualified crews and operate old-fashioned equipment on board. This all give good credence to worries about sea accidents, especially as there is insufficient compensation in such accident cases.

Therefore, thorough supervision was called for in order to manage and regulate these vessels in domestic ports, the KNFC said.