Busan Port to defer port fee collections for a year

THE Busan Port Authority (BPA) is offering container shipping lines that regularly call at the South Korean port one-year's delay in charging fees for port entry, berthing and anchorage fees starting November 1.

"As a result of an extended period of economic crisis, unsustainably low freight rates, decreased cargo volumes and cash flow problems, the BPA is stepping up to help the lines to offset their problems," said a statement from the port.

It said the container shipping lines can instead pay off the port fees accumulated during this one-year grace period in monthly instalments, starting November 1 next year.

"In case of further times of crisis continuing beyond this timeframe, the BPA has a contingency plan to review the situation and consider extending the grace period," port authorities said.

It added that the "BPA's offer is the world's first case of this kind. The innovative and progressive plan will take some strain off of shipping liners' cash flow and allow them some much needed time and support for recovery."

From January to August, the port's container throughput fell 16.8 per cent year-on-year to 7.64 million TEU, including a 19.9 per cent decrease in import/export cargo volume to 4.19 million TEU, while trans-shipment cargo fell by 12.8 per cent to 3.44 million TEU.

(Surce: Transport Weekly)