23 C
Hamburg
Sunday, August 14, 2022
Home Services Blank Sailings Tight shipping capacity sees carriers skip Busan

Tight shipping capacity sees carriers skip Busan

South Korea's Ministry of Oceans and Fisheries said that liner operators have been omitting calls to Busan, reportedly because Chinese shippers are more willing to pay higher freight charges.

Citing data from Busan Port Authority, the ministry said that from the beginning of this year to 10 July, 6,767 container ships entered the country's busiest container port, a decrease of about 700 (9%) compared to the same period last year.

THE Alliance, comprising Hapag-Lloyd, ONE, Yang Ming and HMM, is among those skipping Busan. From 19 July to 15 August, the alliance's MD2 Asia-Mediterranean service will not stop at Busan.

To maintain schedule reliability and prioritise container allocation, liner operators have been skipping ports that are perceived to be less important, said Linerlytica analyst Tan Hua Joo, who told Container News that the situation is not unique to Busan.

Chinese ports Qingdao and Tianjin have also been affected, even though Tianjin is the main port serving Beijing.

In May, Maersk Line decided to skip Ningbo-Zhoushan, Busan and other Japanese ports on several Asia-Australia services.

Despite liner operators skipping calls to Busan, BPA figures show that container exports from the port actually increased in H1 2021. Transpacific exports totalled 534,000TEU, up 24.2% year-on-year, while exports to Europe went up by nearly 18%, to 326,000TEU.

Explaining the anomaly, Drewry senior manager for container research, Simon Heaney told Container News, “It’s entirely possible for trade flows to increase despite fewer actual calls. It could be that ships are bigger on average, and/or they are more fully utilised than before.”

MOF said that to alleviate the capacity and equipment shortage, it had worked with South Korean ocean-going carriers HMM and SM Line to deploy more ships and offer “extra loader” services.

As of 12 July, HMM and SM Line have deployed 44 ships to Transpacific and Asia-Europe routes, transporting an additional 121,000TEU as a result.

Martina Li
Asia Correspondent

Latest Posts

CN Photo Project: The Picture of the Week

Container News wants to thank you all for your participation in the CN Photo Project. Among all the very beautiful photos we have received, the Container News team has...

FMC requests comments on benefits of issuing emergency order requiring information sharing

The US Federal Maritime Commission (FMC) is seeking public comment on whether supply chain congestion has created conditions that warrant the issuance of an...

Forto and Hapag-Lloyd collaborate to deliver biofuel alternatives

Through a new partnership with Hapag-Lloyd, technology company Forto has launched a biofuel programme for maritime transport customers seeking to make their transport greener. More...

Aqaba Container Terminal launches 20-year decarbonisation plan

Aqaba Container Terminal (ACT), the gateway to the Levant region, has announced its decarbonisation strategy. Between 2020 and 2030, the terminal aims to reduce its...

Top 10 Best Undergraduate Cybersecurity Programs

Demand for cyber protection professionals now exceeds supply. The USNC for Statistics shows that the number of new cybersecurity programs has increased by a third....