BPA to Provide Grace Period to Shipping Lines

During a meeting with shipping carriers calling at Busan Port hosted by the BPA on October 7th, the authority's president, Ki Tae Roh, announced avant-garde plans to assist shipping lines in this time of crisis.

As a result of an extended period of economic crisis, shipping lines have endured unsustainably low freight rates, heavily decreased cargo volumes, and now cash flow problems. At a time when borrowing from financial institutions is becoming more and more difficult, the BPA is stepping up to help the lines to offset their problems.

From November 1, 2009, until October 31, 2010, the BPA plans to offer container liners with regular service at Busan Port a grace period. During this time, these liners will not be required to pay port usage fees, port entry, dockage, or anchorage. The liners can instead pay the fees acquired during the year period in monthly installments, from November 1, 2010. In case of further times of crisis continuing beyond this timeframe, the BPA has a contingency plan to review the situation and consider extending the grace period.

The BPA's offer is the world's first of its kind. The innovative and progressive plan will take some strain off of shipping liners' cash flow and allow them some much needed time and support for recovery.