KOREA's Port of Busan will be hit by a 3.5 per cent cargo decline from 2017 onward because of Hanjin Shipping's demise and the coming of two new shipping alliances, according to Korea Maritime Institute.
Busan Port handled 10 million TEU in 2015, of which the Asia-North America trade lanes accounted for 36.7 per cent of total volume, while Asia-Europe shipping routes made up 6.7 per cent. The Institute's report forecast that freight volume on these two trade routes combined would shrink by 350,000 TEU, reported Hellenic Shipping News.
Starting from April 2017, the 13 shipping companies currently participating in the three shipping alliances of G6, Oceans 3 and CKYHE will be reorganised into two alliances comprising nine shipping lines, as a result of mergers and liquidation.
"The projection is only based on the three shipping alliances, excluding the 2M+H (Hyundai Merchant Marine), which has not finalised their shipping line plan. (If including the 2M+H,) the harbour volume of Busan Port will further drop," the report was cited as stating.
According to plans unveiled by the three alliances, three shipping routes that call at Busan Port will be reduced. Each route brings 80,000 to 140,000 TEU of transhipment traffic a year. Busan Port Authority projects transhipment freight this year will decrease by 2.4 per cent.