By Alison Koo (The Loadstar) – South Korean exporters are excited about the country's first container shipping voyage through the Northern Sea Route.
Cargo is being reserved for a 2,800 TEU container ship that will be chartered by PanStar Line for a service scheduled on August 22. This route will connect Busan with Rotterdam, Hamburg, and Gdansk.
PanStar held a meeting on Monday with exporters and executives from logistics companies like CJ Logistics, LX Pantos, Hyundai Glovis, Taewoong Logistics, and Intergis.
Safety concerns were eased by the fact that the average temperature in the Arctic Ocean during the journey will range from 1º to 8ºC. The small temperature difference between day and night helps preserve cargo quality.
Since opening bookings, PanStar has seen a surge in requests from shippers and freight forwarders for various types of cargo. This includes automotive parts and synthetic resins, which are important exports to Northern Europe, as well as used cars, food products, liquid cargo, cosmetics, and steel.
There is also an increase in inquiries and reservations for transshipment cargo from Japan and China. This trend suggests that the Arctic route could develop into a multimodal logistics network for Northeast Asia.
Kang Sang-in, PanStar’s general manager, mentioned, “The Arctic route is not just about opening a new path; it’s a challenge that creates new history for South Korea’s shipping industry.”
Mainly focused on ferry services between South Korea, Japan, and China, PanStar Line was the only company to bid in the Ministry of Oceans and Fisheries’ tender for the trial South Korea-Europe voyage through the Northern Sea Route.
The South Korean government aims to replicate China’s strategy by establishing faster shipping routes via the Northern Sea Route. The potential for longer navigable periods in the Arctic Ocean due to rising temperatures, coupled with the need for diverse supply chains, has prompted China and Japan to explore the NSR as an alternative route between Asia and Europe.
Amid growing uncertainties regarding the Suez Canal route, especially due to the crisis in the Red Sea and various geopolitical risks, the Northern Sea Route is gaining attention as an option that can reduce sailing distances and transit times.