Fertilizer support for N.K. launches this May

South Korea seems to be seriously ready to support North Korea with 200,000 tons of fertilizer aid this May. Humanitarian Supply Department at the Ministry of Unification revealed on April 24 that the amount, 200,000 tons of fertilizer, to provide to North Korea are currently fixed and proper vessels will be recommended by the Ministry of Maritime Affairs and Fisheries to seamlessly undertake this transportation project.

The Ministry of Unification is expected to announce the "fertilizer support project" around April 26, and to determine the shipping companies in public. An official at the Humanitarian Supply Department at the Ministry of Unification said that although it is common for 5,000 ton vessels to transport fertilizer, it would select mostly 10,000 ton vessels to lower the transportation costs.

He said that the prerequisite conditions for transporting fertilizers would be just the same as last year's, assuming that it is too hard to reveal what type of vessel is to be used and when the vessel is to be included. According to this, shipping liners carrying fertilizer should be from Korean lines and vessels will have to fly the Korean flag.

Additionally, the crew must be entirely Korean.

South Korea has supplied around 470,000 tons of fertilizer to North Korea, 155,000 tons in 1999 and 300,000 tons in 2000.

Rates will be the first matter to be resolved in the process. Last year, Korean shipping companies only received $19.30 per ton, even though they were supposed to receive $22 per ton. However, the rates seem to be going down more this year. An official at the Ministry of Unification also said that the rates are supposed to go down as using larger vessels reduces transportation costs.

Therefore, it is expected for rates to be lower than last year's and for shipping lines to sign contracts with rates below $19.30 per ton, as only cost effective vessels over 10,000 dwt will be used.