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Gov't and logistics industry move to buoy small, midsize Korean exporters amid war

Published: 26 Apr. 2026, 17:08 Updated: 26 Apr. 2026, 18:02

Export-bound containers are seen at the Pyeongtaek port in Gyeonggi on April 1. [YONHAP]

Government and logistics industry are moving to support small and midsize Korean exporters as shipping and air cargo costs surge in the wake of the Middle East war.

The burden is rising fastest for smaller cargo owners with weaker bargaining power as ocean and air freight rates climb at the same time.

The Korea International Trade Association said Sunday it will launch its 2026 ocean and air export logistics support program on Monday in cooperation with the Ministry of Trade, Industry and Energy, the Ministry of Oceans and Fisheries and shipping, airline and logistics companies.

Korea has been operating an emergency import-export logistics response team since March to respond to disruptions tied to the ongoing situation in the Middle East.

Freight rates by sea and air have jumped more than 40 percent recently under pressure from Middle East-driven logistics disruptions and rising oil prices. The Shanghai Containerized Freight Index rose 41.5 percent from 1,333 on Feb. 27 to 1,886 on April 17, while the Baltic Air Freight Index posted gains in the 30 to 40 percent range on both Europe and U.S. routes. Industry officials say simultaneous jumps in ocean and airfreight are unusual.

In response, the Korea International Trade Association (KITA) will work with eight Korean shipping lines, including Korea Marine Transport, Sinokor Merchant Marine, Heung-A Shipping and Pan Ocean, to provide 1,680 twenty-foot equivalent units of monthly capacity on India and Southeast Asia routes. Freight charges will be set at 10 to 20 percent below market rates.

The program will cover key routes including Chennai and Nhava Sheva in India and Singapore, Port Klang, Bangkok, Laem Chabang, Ho Chi Minh City and Haiphong in Southeast Asia. The measure follows discussions by the emergency logistics response team launched in March and is aimed at helping smaller shippers that have struggled to secure cargo space.

Containers ready for export are piled up at a port in Busan on March 6. [YONHAP]

Ocean freight support in cooperation with Samsung SDS will also run in parallel. Discounted rates will be offered on about 20 routes serving the United States, Europe and Asia, and some routes will receive discounts of about $20 per ton to the U.S. West Coast and $10 per ton to Europe. KITA members will also be eligible for exemptions from advance declaration fees after using the service a certain number of times.

Support for air shipments will also be expanded. KITA said it will operate KITA Express with air cargo carrier Airzeta and Hyundai Glovis and offer discounted rates on routes from Incheon to Los Angeles and to Frankfurt, Vienna and London. Participating companies will be recruited twice, in May and June, with shipments to be supported within each respective month.

Demand for airfreight has recently been rising quickly, especially for consumer goods such as cosmetics and apparel, as ships on Europe-bound routes continue to detour around the Cape of Good Hope because of instability in the Middle East. Industry representatives say demand to switch from sea to air could grow further if shipping delays persist.

“Oil prices and freight rates are rising at the same time because of disruptions to traffic through the Strait of Hormuz,” KITA’s logistics services office head said. “This is a response aimed at easing the logistics burden on small exporters.”

“Exports to the Middle East could surge all at once after the war ends,” he said. “KITA also plans to pursue measures to secure cargo space for smaller shippers once Korean shipping lines resume service on Middle East routes.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]