S Korea to deploy more ships on US routes until Sep

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  • The government and the shipping industry have agreed to put nine more ships on the American route for July and at least six more ships for August and September
  • The plan will see the country operating four shipping schedules to North America monthly starting July under cooperation with carrier HMM
  • There will be soft loans for small firms affected by the spike in freight costs

South Korea is going to temporarily deploy more shipping vessels on US routes to help out domestic companies facing a shortage of capacity and to address a pile-up of containers at the country’s ports.

This was announced by the ministry of trade and the maritime ministry after a meeting with the shipping industry and local consignors, reported Arirang News.

The government and the industry have agreed to put a total of nine more ships on the American route for July and at least six more ships for August and September.

The deployment of more ships is intended to help local exporters cope with the hike in freight costs as well as to alleviate shortages in shipping services amid soaring global demand.

Yonhap News last month reported that according to the Ministry of Trade, Industry and Energy, the plan will see the country operating four shipping schedules to North America monthly starting July under cooperation with HMM, South Korea’s largest shipping line.

The figure marks a sharp rise from the previous plan to operate two shipping services to North America per month.

South Korea also plans to establish a fund worth KRW20 billion (US$17.9 million) to offer low-interest loans to small and medium-sized companies facing financial burdens from the hike in shipping costs.

Each company can apply for up to KRW30 million with an annual interest rate of 1.5%.

South Korea’s exports jumped 45.6% year-on-year in May to extend their gains to a seventh consecutive month due to strong demand for chips amid the global economic recovery.

The government also plans to secure extra ships for trade routes to Southeast Asia.

Photo by Busan Metropolitan city