Reviewing the Impact of the Continuing Unrest in the Red Sea on Maritime Imports and Exports

 - Vice-Minister of Oceans and Fisheries reviews the impact of the prolonged crisis on import and export logistics on March 21st

 On March 21st (Thursday), 2:00 PM, the Ministry of Oceans and Fisheries (Minister Kang Do-Hyung) held an Emergency Response Team meeting to review the status of ongoing shipping disruptions in the Red Sea Strait, chaired by Vice Minister Song Myeong-dal at the Korea Shipowners’ Association Building (Haeun Building), Seoul.

 Due to Houthi rebel attacks on civilian ships transiting the Red Sea Strait, major domestic and international shipowners have suspended their Red Sea operations since mid-December last year, diverting their routes via the Cape of Good Hope, South Africa.

 In response, the Ministry of Oceans and Fisheries has been operating a joint public-private emergency response team since last December to implement support measures for import and export logistics. To resolve shortage in cargo space, one 11,000 TEU-class and three 4,000 to 6,000 TEU-class container ships have been temporarily deployed on the Northern Europe and Mediterranean routes, respectively. Since mid-December, more than 4,500 TEUs of dedicated shipping space has been allocated to small and medium-sized enterprises having trouble securing ships to support their exports. Moreover, the cap on logistic expense subsidies provided through export vouchers was increased from KRW 20 million to KRW 30 million in consultation with relevant ministries.

 With such detour operations underway for roughly three months, the Ministry of Oceans and Fisheries will leverage the meeting to review the effectiveness of the logistics support provided to date and get feedback on the difficulties and challenges of impacted companies to ensure a seamless response to the ongoing situation.