Executive Vice Chairman Lee Kwan-sup of the Korea International Trade Association poses with Senior Executive Vice President Kim Kwang-soo, head of POSCO’s logistics business division, after signing an MOU on the cooperation of supporting maritime transportation to SMEs at Trade Center in Samseong-dong, Seoul, on June 21. (Photo: POSCO)

Chairman Christopher Koo of the Korea International Trade Association (KITA), concurrently chairman of LS Group, has contributed to resolving difficulties related to overseas cargo shipments facing small- and medium-sized exporters.

Koo played a part in persuading conglomerates to provide assistance to SME exporters which have their overseas shipments deferred due to a cargo ship shortage coupled with soaring export cargo volumes.

KITA and POSCO struck an MOU on cooperation to support maritime transportation to SMEs at Trade Center in Samseong-dong, Seoul, on June 21.

Under the agreement, POSCO agreed to provide unused space inside its cargo carriers to SMEs suffering from cargo shortage by year-end. POSCO’s support has enabled SMEs to export their products on a regular and timely basis.

POSCO export volume amounts to 15 million tons of cargo, including steel products, annually under long-term transportation contracts with shipping companies of major countries. POSCO’s cargoes are shipped over about 80 maritime routes in seven global spheres.

POSCO has so far offered benefits to its company customers. POSCO introduced a platform in which small amounts of cargo from POSCO’s company customers are shipped along with POSCO’s early this year.

Under the deal, POSCO decided to provide unused cargo space to SMEs with no direct business interests, starting July 1. POSCO’s cargo volume is transported via capsize bulk carriers.

The Baltic Dry Index (BDI), an shipping and trade index created by the London-based Baltic Exchange, peaked at 3,267, the highest level since June 2010.

The surge is owed to a jump in demand for raw materials such as iron ore, nonferrous metal and grain corresponding to the recovery of the global economy.

In particular, demand for capsize bulk carriers for iron ore and coal is on the surge, leading to surge in other overall cargo fees.

POSCO will aggressively put into practice its management tenet of corporate citizenship by sharing its several years of maritime shipping experiences and infrastructure assets with SME exporters, a POSCO official said.

On the same day, KITA Chairman Koo met with Chairman Chung Tae-soon of the Korea Shipowners’ Association (KSA) and urged the latter to provide full support to the exporting industry suffering from cargo ship shortage.

KITA and KSA discussed ways of promoting win-win cooperation between ship owners and shippers. KITA Executive Vice Chairman Lee Kwan-sup and KSA Vice Chairman Kim Young-mo were also present at the meeting.

 
Earlier on June 15, KITA Chairman toured HMN and Korea Marine Transport Co. (KMTC) headquarters and requested their assistance to SME exporters’ finding cargo space.

KITA Chairman Koo said, “Maritime cargo fare surge and export cargo space shortage have hit SME exporters.” He called for ship owners and shippers to join forces to overcome a crisis and expand exports.