Detention losses over 300 billion won a year

Vessel detentions at the main domestic ports led to losses of 304.4 billion won last year. Topping the charts, the Port of Inchon was responsible for over half of total detention losses.

Rep. Jin-woo Joo of the opposition Grand National Party (GNP) revealed on September 6 that based on a National Assembly audit report by the Ministry of Maritime Affairs and Fisheries detentions in the main domestic ports such as Pusan and Inchon are on the decline and the average detention rate for all domestic ports is also coming down. However, the Port of Kwangyang, Port of Pohang, and the Port of Tonghae showed a lack of facilities compared to increasing cargoes through them, resulting in detentions at these ports and in the end, 304.43 billion won in nationwide losses last year.

Rep. Joo said that with the recent massive investment in the ports, detentions are considerably better now, though some ports still showed high detention rates. The government should be prepared for countermeasures to cut down on logistic costs and stimulate exports.

Port detention losses consisted of direct fees caused by shippers' charges of 31.8 billion won and indirect fees resulting from storage fees as cargoes are shipped beyond their original schedule. Indirect fees came to 272.7 billion won.

The Port of Inchon showed a 10.9% detention rate as 740 out of 6,804 vessels were delayed upon arrival. This caused the highest detention loss, 154.8 billion won, amongst the main domestic ports. The Port of Tonghae marked the highest detention rate, 20.1%, with 93 of 462 vessels delayed. Tonghae detention losses came to 6.5 billion won.

The Port of Pohang showed detention rates to increase year-on-year, marking 1.1% in 1997, 3.1% in 1998, 8% in 1999 and 13.2% in 2000. Detention losses at the Port of Pohang totaled 23.3 billion won in 2000.