Present and Future ROK container shipping market

  South Korea container shipping market can remain closed state, is unknown. For the business policy of going to affected by the policy, or can be avoided in the future passive position.

January 6 South Korean President Park Geun-hye held its first New Year's press conference after taking office in Cheong Wa Dae. She used "are closer than ever before" to describe the current China-ROK relations.

Driven by the rapid growth of bilateral trade between China and Korea, China and South Korea container shipping market is vigorous. 2004-2013 decade, the amount of container cargo container ship of our community council regularly Yellow Sea (Yellow Sea Association) member carriers from 1.32 million TEU to 2.48 million TEU, an increase of 88%. Among this, exports an average annual growth rate of 7.5%; import an annual increase of 6.2%.

But fluctuations in export container volume is large, in 2008, there have been 7.8% in 2009 and 15.46% larger shipments fell twice. Import container volume growth is relatively stable, except for 2008 to reduce the amount of 2.94% box, the other years have maintained fairly good growth.

To be sure, in actively promote China-ROK trade to the good, the demand for container shipping and South Korea will maintain a certain growth, the author of the expected future ROK route cautiously optimistic, but the premise is the fundamental rules of the game do not occur changed.

Characteristics and status

Good foreign trade situation continues to provide a solid foundation for the development of China-ROK container shipping market. But from the perspective of the shipping, container shipping market, China and South Korea are "under the supervision of the development, growth in the dispute," the way it operates dreams, unique.

Association to provide an orderly system of protection

South Korea container shipping market is different from other markets biggest feature is its co-managed by the two civic associations. One is the Yellow Sea Association, a passenger liner is South Korea Professional Committee (passenger ship (ship shipyard trading) Association).

Yellow association currently has 29 members, are engaged in container shipping liner companies, these enterprises in the number, route, Zhou capacity situation is quite basic. Scope of the Yellow Sea port association is regulated and maritime transport (due east, south China's Hong Kong between north Korea Ningbo - a considerable portion of the Korean market, Hong Kong, Taiwan and foreign shipping companies operating Yellow Sea just north of Ningbo route involving the Association. In this paper, container shipping markets especially China and South Korea in the Yellow Sea Association under the jurisdiction of routes), as of last September, China's Yellow Sea Association members on a weekly capacity 20800TEU, 46 voyages; ROK members on a weekly capacity 19200TEU, 39 voyage.

Packet boat association is a branch of China Shipowners' Association, the current 13 member units, both China and South Korea joint venture, operating passenger liner shipping between China and South Korea. Passenger ship a total of 13 members of the Association of capacity, Zhou capacity 8200TEU, operating 35 weekly cruises.

Since the two associations are involved in container transport between China and South Korea, and the presence of some routes overlap, the two associations for capacity allocation and tariff matters such as the establishment of a dialogue management mechanism. We can say that China and South Korea operates the vast majority of airline liner container shipping company in that the non-Han, and are members of the association. In this area of ​​non-association members operating shipping companies, either franchised or incidentally, are not bound by the two associations and management. Over the years, the government and the two associations as a bridge and link between members, to regulate the industry, stable freight rates, market development and make a positive contribution.

Last year the volume of the Yellow Sea Containers Association carriage 248 million TEU. Among them, the export of 1.3 million TEU, an increase of 2.36%; imported 1.18 million TEU, an increase of 12.19%. Container volume of passenger ship carrier association members from 2005 to 365,000 TEU to 515,000 TEU last year, an increase of 41%.

In addition to the Association, another container shipping to South Korea made great contributions to the development of China-ROK maritime talks mechanism. ROK Marine talks mechanism was initiated in 1993 between the competent departments of the two governments, has lasted 21 years, coordinate and solve a series of maritime policy, cooperation, market regulation, and other major issues, and promote the economic development of both countries . In addition to government officials, the talks the two associations often invite China and the ROK president, secretary and incoming business representatives in attendance. South Korea maritime issues as part of talks proposed by the two associations, mainly involved in content distribution of traffic rights, capacity allocation, market management.

Association system to promote market stability

Yellow association was first proposed by South Korea initiated the establishment, in 2002 China joined. The main reason for the establishment of the Korean Association by its "hold together" the national characteristics of the decision, but also the result of national policy guidance. In order to avoid the survival of small and medium sized shipping companies are not squeezed, the South Korean government intends to allow Hanjin Shipping, Hyundai Merchant Marine, South Korea and other large shipping companies to avoid the route, and shipping companies to small and medium groups against competition from other countries liner companies, which and China COSCO, CSCL, Sinotrans shipping routes between China and Korea leading state-owned enterprises always differ (ROK route on the four most important shipping companies not only reached through SOEs). So, although in recent years Busan route operating bleak, but the situation is rare withdraw liner companies in Korea, which is mainly due to the close cooperation between them: on the one hand, high-density swap space so that each one route, each ship are by the number of cabin liner companies, even if the amount of loss is limited; on the other hand, the South Korean shipping companies generally are small and medium sized operators on the route South Korea and Japan, South Korea and Japan market for the formation of a de facto monopoly. Each shipping companies of the boat harbor investment, exchange, full coverage of all the Hong Kong side South Korea and Japan, and strict internal system to ensure that the share of freight perennial remain high. Violation of any shipping company that once in tariffs, capacity and share aspects will be subjected to heavy penalties. Korea-Japan routes excess return on the Korean shipping companies can tolerate another reason for the loss of Busan route is the main reason for the Sino-Japanese Korean shipping companies shipping companies to enter the market in South Korea and Japan blocked. In contrast, although there are cooperation between the Chinese shipping companies, but in terms of tightness and stability on the far.

Despite the poor market environment, shipping companies still need to seek development, so a new model of cooperation emerged in the Yellow Sea Association - Association members vote for new routes operating side, the boat and its responsible investment operations, members of the Association Sharing space according to their needs, and then prorate the cost of accommodation. This model not only strengthened cooperation between shipping companies, shipping companies have reduced the cost of opening lines, more important is the overall market capacity has been effectively controlled, has multiple purposes.