The container turnover at Port of Busan sharply reduced in the beginning of the year, because of the reorganization in container shipping alliances and economy slowdown of the Asian economies. The turnover of the port in April 2016 amounted to 1.583 million TEU, which represent 5.2% yoy decrease. The decline in turnover is largely due to a drop transshipment volumes due to rerouting of the largest container carriers services. In April 2016, the Port of Busan reduced transit containers to Europe by 34.3%. The sharp decline in the transit shipment volumes, obviously, will continue, as it is largely due to the change of routes and services in relation with the restructuring of the container shipping alliances.
In general, the total container traffic in South Korean seaports report 2.5% yoy decrease to 2.15 million TEU, delaying from the other major ports in the world. The negative trend of South Korean exports remain. The volume of exports to China and USA declined by 18.4% in April, which seriously hurt the the report of the seaports in the country.
The future of container shipping in the country is closely connected with Hyundai Merchant Marine. If the carrier fail to join THE Alliance during the next year, it will follow to new decrease of transshipment from Port of Busan and other South Korean terminals. Currently, Hyundai Merchant Marine provides about 5% of the total transit transshipment in the port turnover.
Meanwhile, the 10 largest ports in the world have reduced shipment volumes by 0.9%. However, Chinese ports continue to increase their market share and throughput. In April, Port of Guangzhou grew by 7.4%, while Port of Qingdao increased by 3.9% and Shanghai expanded by 0.7%. The transshipment volumes of Chinese ports decreased by 11.5%.
Port of Busan is the largest port in South Korea, located at the mouth of the Naktong River on a deep protected bay. It is the fifth busiest container port in the world and the largest transshipment port in north-east Asia. The port is facilitated by 26.8 km of quay wall, allowing to berth 169 vessels simultaneously and handle cargo of 91 million tons per annum.