Nowadays a fierce competition among the liner carriers and thus liner shipping market is characterized by chronic overtonnage and lower freight rates. So this paper's purpose is to analysis the determinant of liner freight rates and to seek for an effective policy and counter measures to stabilize liner freight market and rates. To achieve research purpose, on empirical and theoretical study was conducted. Survey questionnaire Objects are local ship operators and international freight forwarders in Korea And analysis method are reliability Test, factor analysis method for the variable choice and used the Structural Equation modeling(SEM) analyzing relationship determinant of freight rates with freight rates change & shipping company's decision & performance. As to Results of survey analysis. The best optimization strategy for both carriers and shippers in liner shipping business is to maintain a stable and adequate fright rate without its rapid fluctuation as per supply and demand in the market. To be concrete, it is essential for them to set up and effectively manage on international institute or association for the purpose of I) constant study and circulation of ships capacity us cargo movements, ii) strong recommendation of capacity adjustment.

• Ho-Geon Park
• Ki-Myung An