The Fanstar Acro, the first container ship to trial the Arctic route, has returned to Busan after a 50-day voyage, but it did so without securing any planned import cargo, carrying only empty containers. While the voyage itself was deemed successful, it has raised questions about the commercial viability of the Arctic route due to limitations in securing cargo in both directions.
According to data from the Ministry of Oceans and Fisheries received on October 11 through Rep. Kang Seung-kyu's office, the 2,800 TEU container ship Fanstar Acro loaded a total of 1,743 TEU of empty containers from six domestic companies during its return journey.
Previously, the Fanstar Acro departed from Busan New Port on August 22 carrying 737 TEU of export cargo, including chemical products, used cars, and auto parts, along with 202 TEU of empty containers, totaling 939 TEU. The Ministry had announced plans to transport 1,300 TEU of empty containers and import cargo on the return trip, but the failure to secure import cargo resulted in the ship returning with only empty containers.
The failure to secure import cargo has also created uncertainty regarding the cargo transport incentives provided to participating shipping companies. The Korea Shipping Association had set aside 3 billion won in basic operational support, along with an additional maximum of 1 billion won in cargo transport incentives. The structure stipulates that if the total round-trip container cargo transport volume is between 1,000 TEU and 2,000 TEU, 500 million won will be awarded, and if it exceeds 2,000 TEU, 1 billion won will be awarded.
However, the only export and import cargo transported by the Fanstar Acro was the 737 TEU loaded at departure, with the return journey consisting solely of empty containers. Since the cargo transport incentives were designed to encourage actual cargo acquisition, there is expected to be controversy over whether empty containers can be counted as part of the transport performance.
While industry experts acknowledge that the trial voyage confirmed the operational potential of the Arctic route, they also point out its limitations in verifying commercial viability. Container ships need to secure stable cargo during round trips to enhance profitability.
One industry expert noted, "Existing container ships also fill 40-60% of their total volume with empty containers when returning from Europe due to insufficient cargo demand from Europe. The Arctic route inherently faces challenges in securing business viability, and without significant changes in the transportation environment, such as a prolonged closure of the Suez Canal, it will be difficult to establish it as a commercial route."
The economic viability of the Arctic route has been a consistent topic of debate. While there are expectations for cost savings due to reduced sailing distances, challenges such as the difficulty of maintaining stable operations year-round and uncertainties related to international sanctions affecting finance, insurance, and payment are also significant concerns. Ultimately, experts suggest that establishing a business structure that allows private shipping companies to voluntarily participate is crucial, moving beyond government-supported one-time trial voyages.
Rep. Kang Seung-kyu stated, "The government may assess the outcomes of the Arctic route trial voyage positively, but the reality is that it was merely a project that transported empty containers. If the Arctic route is truly the 'future of Busan,' effective measures for securing actual export and import cargo and ensuring commercial viability must be developed."
* This article has been translated by AI.
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