2002-04-17 17:41

Transit vessels turn away from Pusan

Pusan Regional Maritime Affairs and Fisheries asked oil companies for marine fuel and oil price cuts.

The regional agency pointed out that the inordinately high oil costs at the Port of Pusan prevent it from becoming a free port.

The Pusan agency reported on March 13 its survey results on oil costs for vessels in eight foreign ports where ‘IF-380’ for large vessels cost 114 dollars per ton in Pusan while costing 108 dollars in Singapore, 102 dollars in Rotterdam, and 108 dollars in Vancouver.

Bunker oil (MDO) for middle and small sized vessels below 2,000 tons is as much as 31% higher in the Port of Pusan compared to other international ports. MDO is 190 dollars per ton in the Port of Pusan, while only 152 in Singapore, 157 in Hong Kong, and 145 in Rotterdam.

For vessels that refill in Asia, nearly 90% visit Pusan or Singapore. However, due to high oil costs, most vessels avoid calling in Pusan or just buy enough oil to get to Singapore.

Vessels purchasing oil in Pusan numbered 2,624 last year. That number, however, increased by 10.7% over 2,371 in 2000, but the money they spent decreased by 17.4% to 143 million dollars from 169 million dollars in 2000.

Purchase amounts per vessel dropped by 27.1% to 42,584 dollars from 58,453 dollars.

The Pusan regional agency stated that high oil costs hinder the Port of Pusan from being a ‘Free Port for Transit vessels’, and asked the four largest Korean oil companies to lower prices.

The Ministry of Maritime Affairs and Fisheries waives port dues and anchorage fees for vessels calling to buy goods or fill up with oil since December 1997. The same exemptions have applied to vessels calling in the Port of Pusan for repairs since February 1999.
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