The trade dispute between Korea and Japan is emerging as a
brainchild of the shipping market. As Korea is taking a counter-
offensive against Japan''s restriction on the export of hydrogen
fluoride to Japan, container shipping companies that transport trade
cargo between the two countries are also growing.

The Korea-Japan route service operators said the demand for imported
beer from Japan is gradually showing signs of sluggish demand. Beer
such as Asahi, Kirin and Sapporo, clothes such as Uniqlo and
Descent, and cars such as Toyota and Honda are the main targets of
Japan''s boycott. Media reports say sales of Asahi Breweries in Korea
have fallen by more than 40 percent since the trade dispute between
South Korea and Japan. Japanese beer is one of the major
transportation items of the shippers on the Korea-Japan import route.

"The volume of beer has dropped a lot recently," a source from the
shipping company said. "I don''t think it will be easy for importers
to digest their existing stock by the end of this year." "Although
supplies of beer have not decreased so far, there is a lot of stock
that is being built up (from a beer company)" said another
representative for the company.

The hydrogen fluoride, which was designated as an export-regulated
item in Japan, disappeared from the Korea-Japan route. Hydrogen
fluoride is transported in a special tank container in a liquid
state (fluoric acid). Japanese manufacturers have purchased
equipment exclusively for transportation through logistics
companies. SOC (Suju-owned container) that can also be charged for
shipping empty containers back to JapanBecause it is an item, it is
a painful situation for the shipping line.

In the case of Japanese cars, it is not expected to have a
significant impact on container carriers as they are being
transported by dedicated lines. However, it is worrisome that
transportation of car parts can be reduced. It is analyzed that the
damage will increase if not only products from Japan but also goods
from Korea are hit. Currently, auto parts such as tires and wheel
mirrors are exported to Japan.

Due to the situation, the ship''s ships (shilling) reached a red
light. In particular, August, when the vacation season begins in
earnest, is the traditional off-season of the Korea-Japan route, and
weak demand is expected to intensify from this month, which is also
deepening concerns among shippers. The shippers set the sealing for
the fourth round of this year at 96 percent this year.

"Although we are in a chaotic situation due to trade disputes, we
are trying to maintain our high performance by loading as many cargo
as possible in July," said a Prefectural official. "In August, the
trade dispute and the holiday season are expected to lead to a
significant drop in demand."

The official tally for May showed negative growth. According to the
Korea Near Sea Transport Council, the volume of container shipments
that went between South Korea and Japan in May came to 156,800 TEUs,
down 5.7 percent from 166,200 TEUs in the same month last year. The
monthly volume of goods on the Korea-Japan route has shown a
sluggish performance this year, except for one month in March.
Export cargo rose 2 percent to 34,000 TEUs, imported cargo fell 14
percent to 22,400 TEUs and transshipment cargo fell 6 percent to
104,00 TEUs.

Freight has been under downward pressure due to heated competition
with foreign shippers. According to the Ministry of Maritime Affairs
and Fisheries, the declared freight rate for the export route is
recording around $150. It is similar to last month, but it is down
about $30 from the beginning of this year. Import charges are below
fifty dollars.