The ongoing conflict between the United States and Iran has persisted for six months, leading to prolonged logistical burdens for export companies in the Middle East. With maritime transport through the Strait of Hormuz still restricted and global shipping rates rising, KOTRA is reassessing logistics in 13 Middle Eastern countries and expanding support for alternative transport and logistics costs.
The Korea Trade-Investment Promotion Agency (KOTRA) announced on September 14 that it will strengthen support for export companies by reviewing local maritime and air logistics through its trade offices in 13 Middle Eastern countries.
As of early September, air cargo to the Middle East is available from all 13 countries. Deliveries can be made within two weeks, making it suitable for urgent or small shipments. In fact, some buyers in Dubai have opted to switch their maritime shipments to air transport at their own expense.
In contrast, maritime transport still relies on alternative routes. Of the 24 major ports in the six Gulf Cooperation Council (GCC) countries, nine ports outside the Strait of Hormuz are operating normally, while access to the 15 ports inside the strait remains difficult.
The number of vessels passing through the Strait of Hormuz dropped to seven on September 9, half the recent ten-day average of 14. This indicates that normal traffic through the strait has not yet resumed amid the prolonged conflict.
Logistical disruptions are also impacting exports. Last month, South Korea's exports to the Middle East totaled $1.19 billion, a 15% decrease compared to the same period last year. The Shanghai Containerized Freight Index rose to 3,409.6 in August, approximately 2.5 times higher than at the end of February when the conflict began.
KOTRA is increasing the support limit for companies using local shared logistics centers by 1.5 times, raising it to a maximum of 36 million won. The agency will also enhance logistics optimization support by combining air and maritime transport based on individual companies' cargo volumes and items. To reduce dependence on the Middle Eastern market, new support for export logistics using reverse direct sales will be established.
Next month, KOTRA will operate a special section for the Middle East at the 'Boom Up Korea' event. The agency plans to facilitate consultations between Middle Eastern buyers and domestic companies while also supporting market diversification in case of continued logistical disruptions.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.