Korean / Indonesian, Thai trades introduce minimum rates

Amongst worries of deterioration and insolvency in Southeast Asian trade routes, six Korean shipping companies introduced a "minimum rates system" in Korean / Indonesian and Thai trade routes, starting from June 1.

According to the Committee of Shipowner's for Asian Liner Services on June 14, Korean / Indonesian and Thai trade routes showed plunging rates hitting rock bottom in part due to rising operating costs and high cargo-collection competitiveness caused by vessel capacity oversupply. This has created a situation many are incapable of maintaining regular services. As a remedy, shipping companies have fixed the minimum rates, scheduled to be put it into practice from June 1, to properly sustain the routes.

The Korean / Indonesian and Thai trade routes charge $450 / TEU (Twenty-foot Equivalent Unit) and $650 / FEU (Forty-foot Equivalent Unit), and Terminal Handling Charges (THC) are paid as extra.

Most ports in Southeast Asia trade routes have suffered from route insolvencies due to accumulated debts in the wake of deficit operations and deteriorating sea transportation rates.

The six Korean companies include: the KMTC (Korea Maritime Transportation Corporation), Dongnama Line, Sinokor Merchant Marine Co., Ltd., Hanjin Shipping, and Heung-A shipping.