SEOUL, March 2 (Korea Bizwire) – The collapse of Hanjin Shipping Co. is expected to push up shipping costs of local exporters, and thus undermine their competitiveness and profitability, a survey showed Thursday.
The once top South Korean shipping line was declared bankrupt on Feb. 17.
The failure of Hanjin is forcing local shippers to increase their use of foreign shipping lines, but the lack of its service is also pushing up overall prices here, according to the Korea International Trade Association (KITA).
In a recent survey conducted by KITA, 65.4 percent of 332 local shippers with US$1 million in sales last year said their cost of shipping goods overseas has increased since Hanjin Shipping went under.
More than half, or 57.5 percent, of all respondents said they were also having problems finding a ship to carry their outbound shipments, while 44.5 percent said they have already faced delayed deliveries, which may further push up the overall cost of local exporters.
“Local export companies are facing many problems, such as a rise in shipping costs and a lack of means to ship their goods, at least temporarily since the collapse of Hanjin Shipping, and this is also affecting the overall use of local shipping lines by exporters,” KOTRA said in a press release.
“The country must work to develop new transportation routes while working to foster local shipping lines, and also provide support for exporters.”