"Pay Ship Fees Slowly" Busan Port Authority Extends Payment Deadline by 3 Months

Targeting Regular Container Ocean Carriers Struggling Due to COVID-19 ... Priority on Maintaining Global Logistics Network

Busan Port Authority building. The Port Authority extends the payment deadline for ship fees by three months to ease the burden on foreign shipping companies.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The payment deadline for vessel charges for regular container ocean carriers using Busan Port will be extended.

Busan Port Authority (BPA) decided on the 22nd to extend the payment deadline for vessel charges among port facility usage fees for regular container ocean carriers experiencing difficulties due to the COVID-19 pandemic, but only for carriers that apply.

This measure by BPA is receiving positive evaluations for helping to minimize the damage to the global shipping and logistics industry, which has been directly hit by the COVID-19 pandemic, and for maintaining the global logistics network.

From the perspective of minimizing damage in the shipping sector caused by COVID-19 and sharing the difficulties arising from the worsening management of shipping companies, BPA decided to extend the payment deadline for vessel charges, which is normally "within 15 days after departure," to "within 3 months after departure," extending it by about 75 days.

The extension of the vessel charge payment deadline will be implemented for six months from the 1st of next month until the end of the year. The target vessels are regular container ocean carriers (full container ships + semi-container ships), with about 40 carriers applicable. The deferred vessel charges are expected to amount to approximately 40 billion KRW.

This measure by Busan Port, ranked 6th in the world for cargo handling volume, is expected to have a positive impact on shipping companies worldwide and other ports as well.

Patrick Verhoeven, Director of Policy and Strategy at the International Association of Ports and Harbors (IAPH), said, "At a time when maintaining the global logistics supply chain shaken by the COVID-19 crisis is urgent, I support BPA's decision," adding, "This measure by Busan Port, which has a significant influence on cargo volume, will be a good signal not only to directly related carriers such as the World Shipping Council but also to the global logistics supply chain."

Busan Port Authority extended the payment deadline for vessel charges on full container ships during the global economic crisis in 2009. This time, the target vessel types have been expanded from "full container ships" to include "semi-container ships," and vessel security charges have also been included.

Vessel security charges are costs that carriers must pay to terminal operators. Since these charges are integrated and billed through the same system as vessel charges, their extension is also necessary.

Because vessel security charges are not BPA's revenue, some difficulties were expected in extending the deadline, but it is known that this was achieved through the active cooperation of terminal operators.

President Nam Ki-chan said, "In a difficult situation for the entire shipping and port industry due to the COVID-19 crisis, I hope that this measure by our authority will help improve cash liquidity for our client companies and contribute even a little to the normal operation of the logistics supply chain."

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