Trade Volume in Q1 Down 4.5%... "The Impact of COVID-19 Is Just Beginning"

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[Asia Economy Reporter Joo Sang-don] In the first quarter of this year, port cargo volume and import-export cargo volume decreased by 2.5% and 4.5%, respectively. These figures reflect data before the full impact of the novel coronavirus disease (COVID-19) was realized, and the decline in cargo volume is expected to worsen going forward.

The Ministry of Oceans and Fisheries announced on the 28th that the total port cargo volume handled at national trade ports in the first quarter was 388.92 million tons, down 2.5% from 398.99 million tons in the same period last year.

Import-export cargo volume shrank by 4.5% to 332.73 million tons compared to 348.24 million tons in the same period last year, due to the contraction of global trade caused by COVID-19.

An official from the Ministry of Oceans and Fisheries stated, "In February and March this year, the decrease widened to 1.7% and 4.8% respectively compared to the same period last year, indicating that the impact of COVID-19 is becoming visible. This decline is likely to deepen further."

Coastal cargo volume increased by 10.7% to 56.19 million tons compared to 50.75 million tons in the same period last year. This was mainly due to the resumption of sand extraction permits in the Incheon area (October 2019), which caused sand cargo volume to surge to 5.24 million tons (9.3% of coastal cargo volume), a 530% increase from 830,000 tons in the same period last year.

By port, Busan Port, Gwangyang Port, and Ulsan Port decreased by 4.5%, 11.1%, and 0.3% respectively compared to the same period last year, while Incheon Port and Pyeongtaek-Dangjin Port increased by 2.5% and 5.2%, respectively.

By item, petroleum products increased by 4.1% compared to the same period last year, but thermal coal and ore decreased by 15.0% and 1.8%, respectively.

The container handling volume at national ports recorded 7.14 million TEU, a 0.4% increase from 7.11 million TEU in the same period last year, as the growth slowed due to the impact of COVID-19. Import-export cargo was recorded at 4.04 million TEU, a 0.08% decrease compared to the same period last year. Notably, cargo volumes from major trading partners China and Japan, which account for about 40% of total trade volume, decreased by 0.6% and 2.2%, respectively, compared to the same period last year.

Transshipment cargo at Gwangyang Port significantly decreased due to alliance restructuring, but a temporary rebound effect was observed as shipping companies made substitute calls at Busan Port when Chinese ports operated abnormally during the early stages of the COVID-19 outbreak. As a result, transshipment cargo volume increased by 1.3% to 3.05 million TEU compared to the same period last year. The Ministry of Oceans and Fisheries analyzed that the 6.48% increase in transshipment cargo volume in March compared to the same period last year was also a temporary effect, given the expected global trade volume decline due to COVID-19.

Kim Jun-seok, Director of Shipping and Logistics at the Ministry of Oceans and Fisheries, said, "Considering the characteristics of the shipping and port industry, where there is a time lag between global economic downturns and decreases in port cargo volume, the impact of COVID-19 became visible starting in March. We expect the decline in cargo volume at each port to deepen from the second quarter onward. In response, we will strengthen support such as financial aid in cooperation with related ministries to minimize damage to the port stevedoring industry."

This content was produced with the assistance of AI translation services.