General Market
Korea’s Economy is recovering more rapidly than other Asia and OECD countries, the Stock Market Surpassed 2009 High in September with foreign investment.
KRW / USD exchange is becoming stable at 1200krw.
The economy growth in the third quarter of 2009 is more than the previous quarter by virtue of the expansionary policy of the government and general sentiment in the recovery of the economy.
The Korean economy is expecting a 3.9% growth in 2010. Export is predicted to increase over 10%, expenditure & investment at a growth of over 3%. Both forecasted export and domestic demand will put the economy in good shape in 2010.
Shipping Market
Current Korea export volume is increasing more than other countries due to the recovery of the economy and the strengthening of international competitive power of large enterprises like Samsung, Hyundai & LG, with their main focus in the Mobile, Semiconductor, Electronics goods, Chemical and Motor industry.
Shipping lines carrying these commodities are able to implement GRI successfully because carrier utilization is almost full. These commodities are usually carrier’s cargo and not F/F shipments,
therefore it neither increase F/F volume nor make profitability better. On the contrary, increased carrier cargo and continuous GRI have made consolidators’ profitability worse because consolidators are not able to adjust LCL rates due to strong market competition.
This market situation is expected to continue into 2010 with consolidators’ cost increasing and profit margin decreasing.
Business Strategy in 2010
- Focus on LCL – NVOCC Business , especially Import nominations from North and South China
- Improving import warehouse and t/s system
- New Trade Lanes development
- Developing stable and weekly service for irregular trade lanes which started in 2009
New Trade Lanes
- Kuwait
- New Delhi (India)
- Bangladesh
- Cape Town (South Africa)
New Business
Market research to check the possibility to move into FCL/Retail market
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