PanStar Northern Sea Route maiden voyage attracts attention

Panstar containers[34]

South Korean exporters are enthusiastic about the country’s maiden container shipping voyage through the Northern Sea Route.

Cargo is being booked for the 2,800 teu box ship to be chartered by PanStar Line for the 22 August service from Busan, calling at Rotterdam, Hamburg, and Gdansk.

PanStar held a briefing session on Monday, attended by exporters and 3PL executives from CJ Logistics, LX Pantos, Hyundai Glovis, Taewoong Logistics and Intergis, among others.

Safety concerns were alleviated by highlighting that the average temperature in the Arctic Ocean during the voyage would be between 1º and 8ºC, which small difference between day and night is favourable for maintaining cargo quality.

Since PanStar opened bookings for the service, requests from shippers and forwarders have been increasing rapidly for diverse cargo, including automotive parts and synthetic resins – key exports to Northern Europe – as well as used cars, food products, liquid cargo, cosmetics, and steel products.

And enquiries and reservations for transhipment cargo from Japan and China are also increasing, raising the likelihood that the Arctic route will expand into a North-east Asian multimodal logistics network.

PanStar’s general manager, Kang Sang-in, said: “The Arctic route is not merely about pioneering a new route, but is also a challenge that creates a new history for South Korea’s shipping industry.”

Primarily operating passenger and cargo ferry routes between South Korea, Japan, and China, PanStar :Line was the only company to participate in the Ministry of Oceans and Fisheries’ tender for the pilot South Korea-Europe voyage through the NSR.

The South Korean government is keen to emulate China in arranging expedited container shipping routes through the NSR. Potential extension of navigable periods in the Arctic Ocean, due to warmer temperatures, and the growing need for supply chain diversification has made China and Japan look to the NSR as an alternative bridge between Asia and Europe.

In particular, amid heightened uncertainty over the Suez Canal route, due to the Red Sea crisis and geopolitical risks, the Northern Sea Route is attracting interest as an alternative capable of shortening sailing distances and transit times.

 

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