Speedy Stabilization
The ocean route service centered-on the New Incheon Port (NIP) has been on track just in one year after it was launched with the opening of the new port close to the huge market of the Seoul Metropolitan area.
The Central China 1 (CC1) service, which launched the first ship to provide a regular container service bound for the U. S. under the auspice of Hyundai Merchant Marine (HMM) belonging to G6 Alliance, celebrated the first anniversary on June 7, according to the Incheon Port Authority (IPA).
The route service bound for the U.S. had been offered via the inner Incheon port until the middle of the 1980s, but stopped the operation as the vessels became large-scaled with the trade amount increasing.
The opening of the New Incheon Port, however, revitalized the service route with the name of CC1.
HMM has been providing services for the route of LA-Oakland-Busan-Gwangyang-Chingtao-Shanghai-Gwangyang-Busan-LA by injecting six container ships of a 6,000 TEU-class, which came into Sun-kwang New Port Container Terminal (SNTC) in the new port once a week
Last year, the CC1 route handled 18,426 TEUs through 29 services after launching the Hyundai Tokyo (a 6,800 TEU-class vessel) first at the port on June 7, and it has handled 15,600 TEUs through offering 22 services as of June 4 this year, showing an increase in handling trade volume. The trade volume per one time service also is showing a steady increase from 635 TEUs in 2015 to 709 TEUs this year.
The trade volume of cold storage and refrigerated items increased almost five times to 287 TEUs this year from the annual total of 49 TEUs last year. Such a sharp increase has a meaning beyond the figure itself in that the refrigerated container charges more than twice the general container in the freight per TEU and the landing and storage charges, improving the profitability of the route and increase the possibility of additional route openings, the IPA explains. .
What lacks, however, is that the management crisis of national flag carriers is deepening the market uncertainty and dropping recently the trade volume which recorded 1,670 TEUs per month once in the first quarter this year.
The IPA, however, expects the trend of increase in trade volume will be recovered after the HMM management is normalized as the troubled carrier is showing a decisive will by deciding to keep the CC1 service route running even amid its serious management crisis.
In particular, last year shippers and carriers showed a high level of satisfaction on the quarantine and customs clearance services when fruits and foods like soya beans, oranges and avocados were imported via the Incheon port to be consumed in the largest Metropolitan market, which will lead possibly to a skyrocketing increase in import volume when the season begins.
Yoo Chang-keun, president of the IPA said, “As the import of hays, fruits and frozen meat from the U.S. has been started, the IPA will make every effort to increase the trade volume steadily and expand the items to handle at the port, making an environment to promote the CC1 route further and to open additional ocean service routes.”