South Korea To Closely Monitor Uncertainties In Shipping Industry Amid US Tariffs

(MENAFN- IANS) Seoul, Feb 17 (IANS) The government here said on Monday it will closely monitor the shift in US trade policies and its impact on South Korea's shipping industry to devise measures to help with the stable business operation of local shippers.

"No particular trouble concerning the shipping of export and import products has been reported yet," Oceans Minister Kang Do-hyung said in a press conference.

But Kang said the government will closely monitor the situation and devise support measures for the local industry as U.S. President Donald Trump's protectionist trade policies, including new tariffs, may put "downward pressure" on shipping costs in the long run, negatively affecting the profitability of shipping firms, reports Yonhap news agency.

"In the short term, the U.S. tariffs could boost ocean freight rates, but they could cause downward pressure in the long term," he said, noting U.S. tariffs could reduce global trade, lowering demand for cargo shipping.

Kang also said the launch of the new U.S. administration may weaken Seoul and Washington's push to create a carbon-free shipping route between the two countries by 2027 as Trump has vowed to promote the use of fossil fuels and put less focus on clean energy.

In 2022, the two sides agreed to jointly operate the "green shipping route," which aims to connect ports in South Korea's southeastern cities of Busan and Ulsan, and ports in the state of Washington in 2027.

The green shipping corridor refers to a route where vessels emit zero carbon by utilising nature-friendly technologies and non-carbon fuels.

"The oceans ministry will continue to communicate with the U.S. and emphasise the mutual benefit of the project for both sides," Kang said.

The oceans minister said the government also plans to promote South Korean companies' interests if the carbon tax is adopted globally, by working to minimize the tax levied per ton of carbon emissions.

The International Maritime Organisation plans to discuss with its member states charging shipping companies a carbon tax starting in 2027.

On the recent series of fishing boat accidents, Kang said his ministry is working to implement various safety measures.

Last week, a fishing boat with 12 people on board caught fire in waters near Buan, some 200 kms southwest of Seoul, leaving two dead, five missing and the remaining five rescued.

Another fishing boat capsized in the waters off the southern island of Jeju, leaving two dead, three missing and the remaining five crew members rescued.

In 2024, the government reported 119 deaths from fishing boat accidents, sharply up by 41 from the previous year. The figure was the highest since 2014, when the corresponding tally stood at 133.

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