South Korea's first commercial container trial through the Arctic has managed to transport only 737 TEUs of cargo, which is significantly less than the target of 1,300 TEUs set for the trip. This underscores the difficulties in building enough demand for a new service along the Northern Sea Route.
The ship, named PanStar Acro, has a capacity of 2,758 TEUs but is carrying around 100 empty containers, resulting in a total load of 837 TEUs, which is about 30% of its full capacity. The cargo consists of various items, including chemical products, used cars, and auto parts.
The vessel left Busan on August 22 and reached Arctic waters on August 31, as reported by South Korea’s Ministry of Oceans and Fisheries. It is on its way along Russia's northern coastline towards Europe, with scheduled stops in Felixstowe, Rotterdam, and Gdansk.
The journey has faced more challenges than anticipated, with the ship needing to adjust its speed and course to navigate through sea ice. As a result, the arrival time at Felixstowe has been pushed back from September 9 to around September 14.
Initially, PanStar aimed to use a container ship with a capacity of about 3,000 TEUs for the trial but ended up using the smaller PanStar Acro, previously known as HMM Mombasa. This vessel was built in 2011 and can hold a total of 2,758 TEUs.
A cargo demand survey conducted around June had indicated a potential demand of approximately 1,300 TEUs. However, the time needed to prepare the ship for Arctic operations created a limited window for securing bookings, which contributed to the lower amount of cargo on board at departure.
Lee Soo-ho, head of the ministry’s Arctic Shipping Route Promotion Headquarters, stated, “For a first voyage, I think it is meaningful that we prepared roughly this amount of cargo, marketed it, and secured it.” The government plans to use this trip to identify the types of cargo and customers that fit this route.
The cargo utilization rate is low by container shipping standards. Major east-west shipping routes typically achieve utilization rates of about 85% to 90%, while the global fleet operates at around 70% to 80%. With 737 loaded TEUs, the PanStar Acro has a utilization rate of about 27% of its nominal capacity.
South Korea is providing significant financial backing for this trial. The Korea Shipowners’ Association is contributing over $2 million for the one-way voyage, plus an additional roughly $700,000 if the round trip exceeds 2,000 TEUs.
This trial aims to see if the shorter Arctic route can offer commercial savings. The route from Busan to Rotterdam via the Northern Sea Route is estimated to cover about 7,000 nautical miles, which is roughly 4,000 nautical miles shorter than the Suez Canal route, potentially cutting transit time by 10 to 14 days. The ministry will analyze sailing times, fuel consumption, operating costs, and schedule reliability during this journey.
China is already taking steps to develop this route as a seasonal container corridor. Companies like Sea Legend and NewNew Shipping have announced Arctic services connecting Asian ports with northern Europe and Russia this summer.
Sea Legend has kicked off a seasonal China-Europe service with its ship Dubai Tower, which is now underway. Weekly services will continue through October.
For South Korea, the PanStar voyage serves mainly as a commercial and operational test rather than establishing a regular liner service. The government aims to develop consistent Arctic shipping services by 2030 and has positioned Busan as a potential hub for future Asia-Europe trade.