The Fanstar 'Acro,' deployed for the Arctic Route, has been put up for sale shortly after its first trial run, prompting calls for policy revisions from the Ministry of Oceans and Fisheries and Busan City. Experts suggest a shift from container ships, which focus on cargo, to tankers that prioritize energy, as securing profitability amid a lack of intermediate stops is unlikely to be resolved in the short term.
According to the shipping industry on October 27, Fanstar Group, the owner of the Acro, is currently considering selling the vessel after its trial run as the first container ship on the Arctic Route. Many argue that any replacement vessel should be chosen based on its ice navigation capabilities and overall utility.
In August, the Acro set sail with 737 TEUs of export cargo but returned to Busan with only 1,743 TEUs of empty containers from six domestic companies, having failed to secure any import cargo in Rotterdam, Netherlands.
This outcome was anticipated. The only ports capable of loading and unloading significant cargo on the Arctic Route between Busan and Rotterdam are in Russia, such as Murmansk. However, due to the intensified international sanctions against Russia following the Ukraine war, trading through Murmansk has become impossible.
Experts assess that the trial run has presented two challenges: vessel suitability and securing stable cargo. They emphasize that the government should prioritize acquiring vessels suitable for route development and discovering stable cargo demand rather than fixating on the trial run's performance.
Analysts note that the Arctic Route's touted advantage of rapid cargo transport contrasts with the shipping industry's emphasis on cargo volume. A shipping company representative stated, "Few companies will venture into a route that risks losses without intermediate stops, especially with vessels limited by ice navigation capabilities. This explains the lukewarm response from private shipping companies to the government's Arctic Route initiative."
Another industry insider remarked, "Russian approval and cooperation are essential for operating on the Arctic Route, and the European Union, which is participating in intensified sanctions against Russia, is unlikely to welcome South Korea's aggressive route development. This is also why major European shipping companies are hesitant to engage in Arctic Route development."
However, as the war between the U.S. and Iran disrupts LNG exports from the Middle East, more companies are focusing on the Arctic Route as a stable energy supply route. There are expectations that once the Ukraine war ends and sanctions against Russia are lifted, LNG exports through key transit points like Sabetta will increase.
In fact, some private LNG power companies are reportedly exploring ways to utilize the Arctic Route for LNG imports after the war's conclusion. While they are currently securing LNG from Australia, Southeast Asia, and Canada, the need for diversifying global supply chains continues to grow.
Some are even discussing the possibility of directly importing LNG from Alaska via the Arctic Route. If this plan materializes, it could garner support from the U.S. government, which has been cautious about granting Arctic Route permits due to concerns over expanding Russian influence in the Arctic.
* This article has been translated by AI.
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