On the 5th,
the Korea International Trade Association (KITA, Chairman Christopher Koo) held
a “Meeting of Cargo Owners for Win-Win Development of the Logistics Industry”
at the Samsung-dong Trade Tower. Members listened to the opinions of the trade
industry regarding the structural improvement of the domestic cargo transport
market pursuant to the termination of the safe fare system via the sunset
clause, and discussed countermeasures.
At the meeting
on this day, KITA Executive Vice Chairman Jeong Marn-Ki said, “I hope that
after the termination of the safe fare system via the sunset clause, cargo
transport fares shall be adjusted according to market economy principles.” “We
need to establish a practice in which transport fares are determined in a
direction that enables win-win cooperation, based on ongoing income gain by the
vehicle owner and innovation,” he remarked, adding, “To date, the cargo
transport market has been characterized by inefficiencies, such as reduction in
vehicle owner profits and increase in cargo owner costs, due to the system in
which vehicle owners are registered to work for logistics companies, and
multi-stage transaction structures. By taking into account the fact that efficiency
of the cargo transport market is diminished due to its monopolistic structure
resulting from new entry barriers, the system shall be reformed so that market
vibrancy can be heightened while profits go to both the vehicle owner and the
cargo owner.” “KITA shall participate in the government-led “Council for
Development of the Logistical Industry” as the representative of cargo owners,
and endeavor to achieve various goals, such as the adoption of the digital
transport mediation platform connecting cargo owner and vehicle owner;
abolishing the cargo vehicles’ license plate regulation system based on total
volume; improving the system in which vehicle owners are registered to work for
logistics companies, and the multi-stage transaction structure; as well as adopting
the rule to submit the Digital Tacho Graph to secure safety for cargo vehicle
drivers,” he said.
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