Policy Research
RESEARCH
KOTI - Korea Transport institute
Korean National Logistics Costs in 2015
- Date
December 15 2017
- Page(s)
114 page(s)
Logistics costs consist of transportation, storage, inventory, packaging, stevedoring (loading and unloading), and administration costs. Logistics costs are associated with GDP, oil price change, and other economic trends at a national level. As such, estimating national logistics costs is complicated and there are considerable risks in reporting and predicting these costs.
The estimation of national logistics costs is one of the major tasks that the Korea Transport Institute (KOTI) has been conducting since 1995. As the country's logistics costs are often used for either beginning a construction project or the establishment of policies, logistics costs should be estimated and reported to support those decisions as accurately as possible on a regular basis.
However, reported logistics costs for a given year reflect costs from two years prior. The logistics costs reported in 2017, for example, are the costs from 2015 due to the delay of various input data. There is also doubt in the level of accuracy of the costs.
This study aims to enhance the methodology used to estimate the national logistics costs, increase the accuracy of the cost estimation, and attempt to reduce the gap between estimated year and reported year. The methodological framework is the same as previous reports published every year. The major contribution of this study is to introduce new input data, which is more accurate and timely in the analysis.
National logistics costs in Korea amounted to 168.03 trillion won for the year 2015. This figure accounted for 10.74% of GDP. The value-added cost of national logistics activities was 102.85 trillion won and the unit-logistics costs and the unit-transportation costs were 78,215 won/ton and 625 won/ton-km, respectively.
There are several issues worthy of consideration in this analysis. The growth in freight transportation costs was significantly influenced by the increase of global oil prices and the labor cost. The growth rates in the value-added national logistics activities and the national logistics costs in 2015 have grown 2.06% and 2.68% in terms of the real price since 2001, respectively. The growth rates in the unit-logistics costs and the unit-transportation costs have consistently increased 1.00% and 1.01% since 2001, respectively.
The estimation of national logistics costs is one of the major tasks that the Korea Transport Institute (KOTI) has been conducting since 1995. As the country's logistics costs are often used for either beginning a construction project or the establishment of policies, logistics costs should be estimated and reported to support those decisions as accurately as possible on a regular basis.
However, reported logistics costs for a given year reflect costs from two years prior. The logistics costs reported in 2017, for example, are the costs from 2015 due to the delay of various input data. There is also doubt in the level of accuracy of the costs.
This study aims to enhance the methodology used to estimate the national logistics costs, increase the accuracy of the cost estimation, and attempt to reduce the gap between estimated year and reported year. The methodological framework is the same as previous reports published every year. The major contribution of this study is to introduce new input data, which is more accurate and timely in the analysis.
National logistics costs in Korea amounted to 168.03 trillion won for the year 2015. This figure accounted for 10.74% of GDP. The value-added cost of national logistics activities was 102.85 trillion won and the unit-logistics costs and the unit-transportation costs were 78,215 won/ton and 625 won/ton-km, respectively.
There are several issues worthy of consideration in this analysis. The growth in freight transportation costs was significantly influenced by the increase of global oil prices and the labor cost. The growth rates in the value-added national logistics activities and the national logistics costs in 2015 have grown 2.06% and 2.68% in terms of the real price since 2001, respectively. The growth rates in the unit-logistics costs and the unit-transportation costs have consistently increased 1.00% and 1.01% since 2001, respectively.