Korea Railroad Corporation (KORAIL) said on the 24th that it will ease the criteria for transport cancellation fees for clients near petrochemical industrial complexes. As the war between the United States and Iran drags on, it rolled out support measures for petrochemical industrial complexes, an industry directly hit.
Accordingly, KORAIL will change the transport cancellation fee, which had been charged on a daily basis, to a monthly aggregate system. For example, say a petrochemical company signed a one-year contract with KORAIL to transport 10 containers a day. Under the current system, on days when 10 or fewer are moved, the company must pay KORAIL a cancellation fee proportional to the shortfall. The cancellation fee is about 70,000 won per 20-foot container. But going forward, as the container transport standard shifts from daily to monthly, the fees the company must pay are expected to decrease.
KORAIL also decided to keep rail freight rates unchanged for the time being despite higher global oil prices. A KORAIL official said the move is intended "to support clients and logistics corporations facing difficulties such as instability in raw material supplies and higher logistics costs due to high oil prices and a strong dollar caused by the Middle East war."