South Korea's container squeeze throws exporters into costly gridlock

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While the shipping squeeze caused by the pandemic is a global problem, the congestion at a transit hub like Busan has made things worse for smaller Korean exporters.

, one of China's busiest ports, was partially shut down in June to control virus cases, some cargo was diverted to neighboring ports such as Busan, worsening the backlogs and periodic delays.

The pain is most acutely felt on less popular routes smaller firms often use, making shipping rates from Busan to Vladivostok rise faster than to the US West Coast, for example. To provide relief, the government has helped finance HMM orders for more containers and expanded cash handouts to support affected small-to-medium exporters.At one of the five new terminals, outbound containers full of goods were stacked to their vertical limits.

"When port closures or other hiccups happen, it doesn't just mean a detour for vessels, it leads to a huge pileup of cargo the ship was due to pick up for exports half a world away," one field officer said, looking at"metal mountains" at the port.

 

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