KITA Launches Strategic Export Logistics Support Amid Middle East Tensions

The Korea International Trade Association (KITA) announced on the 27th that it will implement the '2026 Maritime and Air Export Logistics Support Project' in collaboration with the Ministry of Trade, Industry and Energy, the Ministry of Oceans and Fisheries, and national shipping and airline companies. This initiative comes as export logistics costs have surged dramatically due to the ongoing tensions in the Middle East, placing a significant burden on exporters, particularly small and medium-sized enterprises (SMEs).

The logistics disruption, driven by the Middle East conflict and rising oil prices, has led to over a 40% increase in global maritime and air transport costs. KITA's support strategy aims to alleviate these burdens through tailored operations by partnering with major logistics firms such as Samsung SDS and Hyundai Glovis, comprising three primary tracks varying by shipping method and cargo scale. This collaborative approach is expected to enhance negotiation capabilities for SMEs that typically face logistical challenges.

As part of KITA's efforts, the association will push forward the 'Domestic Shipping Support Program,' which is part of a public-private joint committee established in March to address import/export logistics emergencies. This program will allow shipping companies, including the Korea Maritime Association and eight national carriers, to offer Full Container Load (FCL) export capacity at 10-20% lower rates than market prices. Initially piloted until June, the program's future will be determined based on freight rate trends.

Furthermore, KITA will run a continuous maritime freight promotion aimed at small cargo (LCL) exporters in collaboration with Samsung SDS. This initiative will feature special rates across more than 20 routes in regions such as North America, Europe, and Asia, with added benefits like fee waivers for member companies making multiple shipments.

Growing transportation demands for air freight are noted, particularly for high-quality consumer goods like cosmetics, attributed to the prolonged diversion of vessels around the Cape of Good Hope stemming from instability in the Middle East. To address this, KITA will launch the 'KITA Express' initiative, partnering with Korean air carriers such as Air Jet and Hyundai Glovis. Starting in May, businesses exporting cosmetics, clothing, and accessories to North America and Europe will have access to discounted rates on routes from Incheon to Los Angeles, Frankfurt, Vienna, and London.

Han Jae-wan, head of KITA's Logistics Service Division, emphasized the urgency of the situation by noting that the disruption in the Strait of Hormuz has driven up oil prices and consequently affected global freight across all routes. He expressed optimism that this program will provide relief to exporters grappling with high shipping costs.

Han further pointed out that the conclusion of hostilities might lead to a sudden spike in demand for maritime exports to the Middle East, complicating capacity acquisition for SMEs. He assured that once safe passage through the Strait of Hormuz is confirmed and national carriers resume operations, KITA would work closely with relevant ministries and organizations to secure dedicated shipping capacity for small exporters.