Business Monitor International


South Korea Freight Transport Report

Published 01 April 2014

  • 97 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
South Korea Freight Transport Report

In welcome news for the South Korean economy and, by extension, the country's freight industry, South Korea reported the fastest increase in its industrial productivity in more than four years during December 2013, according to data from state-run Statistics Korea. This was attributed to robust production of memory chips and cars. A rise of 3.4% month-on-month (m-o-m) was observed in the production of the mining, manufacturing, gas and electricity sectors during the reported period.

There was a sharp increase of 7.3% m-o-m in the production of memory chips by firms like Samsung and SK Hynix, in addition to 5.7% growth in auto production by companies such as Hyundai in December. Driven by large government spending and enhanced global demand, the economy grew 2.8% in 2013 as compared to 2% in 2012. This is further predicted to touch 3.8% in 2014, according to the central bank (Channel News Asia).

By mode, the maritime sector (specifically the Port of Busan) is set to enjoy the best 2014 in terms of tonnage throughput, although the Port of Incheon will not enjoy as fruitful a 12 months. Road freight will enjoy a steady 12 months in 2014 with tonnage throughput growth of 3.80%, while rail and air freight will lag slightly.

Headline Industry Data

  • 2014 air freight tonnage throughput forecast to increase by 2.01%.

  • 2014 rail freight tonnage throughput forecast to grow by 3.04%.

  • 2014 road freight tonnage throughput forecast to rise by 3.80%.

  • Total trade (imports plus exports) is set to grow by 3.75% in real terms in 2014.

  • The Port of Busan will see gross tonnage growth increase by 7.27% in 2014.

  • The Port of Incheon is forecast to see gross tonnage growth of 1.70% in 2014.

Key Industry Trends

Hanjin Shipping Sells Bulk Unit As BDI Rallies: Hanjin Shipping Company's decision to sell a majority stake in its bulk cargo division has resulted in the firm's share price rising by the highest rate in two years. We believe the move is well timed as dry bulk rates are...

Table of Contents

BMI Industry View
7
SWOT
10
Freight Transport
10
Political
12
Economic
13
Business Environment
14
Industry Forecast
15
Road
15
Table: Road Freight, 2011-2018
16
Rail
17
Table: Rail Freight, 2011-2018
17
Maritime
18
Table: Maritime Freight, 2011-2018
18
Air
18
Table: Air Freight, 2011-2018
20
Table: Trade Overview, 2011-2018
20
Table: Key Trade Indicators, 2011-2018
21
Table: Top Import Destinations, 2004-2012, US$mn
22
Table: Top Export Destinations, 2004-2012, US$mn
22
Market Overview
24
Industry Trends And Developments
31
Air
31
Maritime
32
Company Profile
36
Korean Air Cargo (KAL)
36
CJ Korea Express
40
STX Pan Ocean (STX)
42
Hyundai Merchant Marine (HMM)
46
Hanjin Shipping
49
Political Outlook
56
Politics Article
56
Trans-Pacific Partnership: Membership Still Up In The Air
56
Creative Economy: Going Anywhere-
57
Table: Table: Political Overview
57
Long-Term Political Outlook
58
Oil Price Outlook
62
Global Oil Products Price Outlook
62
Table: 2013 Oil Product Price Forecast Record
62
Methodology
64
Crude Price Forecasts
65
Table: BMI's Oil Price Forecasts, Average Price (US$/bbl)
65
Oil Product Price Forecasts
65
Table: BMI's Refined Products Forecast, US$/bbl
66
Narrower US Market Crude-Product Spreads
67
Weak Demand Persists
68
Supply: Global Capacity Supports Demand
69
Quarterly Prices
73
Table: BMI Refined Oil Products Quarterly Forecast, US$/bbl
73
Naphtha: Long-Term Growth Faces Headwinds From Gas
74
Gasoline And Gasoil/Diesel: Gasoline Weakness To Continue
76
Jet Fuel: Downward Movement Capped By Recovery
82
Table: Total Air Freight And Passenger Volumes
84
Bunker Fuels: Sulphur Control To Hit Rotterdam Hardest
84
Risks To Outlook
86
Macroeconomic Forecast
87
Strong Downside Pressures in 2014
88
Expenditure Breakdown
90
Private Consumption
90
Government Consumption
90
Investment
90
Net Exports
90
Table: South Korea - Economic Activity
91
Demographic Forecast
92
Table: South Korea's Population By Age Group, 1990-2020 ('000)
93
Table: South Korea's Population By Age Group, 1990-2020 (% of total)
94
Table: South Korea's Key Population Ratios, 1990-2020
95
Table: South Korea's Rural And Urban Population, 1990-2020
95
Methodology
96
Industry Forecast Methodology
96
Sector-Specific Methodology
97
Sources
98

The South Korea Freight Transport Report has been researched at source, and features latest-available data covering commercial transport and logistics by road, rail, air and water; industry forecasts, company rankings covering leading national and multinational operators; and analysis of latest industry trends, opportunities, projects and regulatory changes.

Business Monitor International (BMI)'s South Korea Freight Transport Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Korean freight transport and logistics industry.

Key Benefits

  • Benchmark BMI's independent freight transport industry forecasts on South Korea to test other views - a key input for successful budgetary and planning in the strategic freight transport market.
  • Target business opportunities and risks in the Korean freight transport sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Korea.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs, and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering freight transport and logistics, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the freight sector and within the broader political, economic and business environment.

Industry Trends And Developments

Analysis of latest projects across the freight transport sector (road, rail, air, sea and logistics) including market overview which provides an outline of the key elements driving development.

BMI Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry and macroeconomic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Transport Sector: Sector Value (US$bn); sector real growth (%); employment (`000); total freight carried by road, rail, inland waterways, maritime, air and pipeline (mn tonnes-km/mn tonnes)

Trade: Exports and imports (US$mn) by category of goods (manufactured goods, food, chemicals etc.); top-5 import and export trade partners (US$mn); imports/exports to each global region (US$mn)

Port Data: Throughput (`000 tonnes) and container throughput (TEU) for all major ports in the state

Oil Products Prices: Price forecasts for gasoline and aviation fuel (US$/bbl) at all major global energy trading hubs

Economic Indicators: Nominal GDP (US$bn); real GDP growth (%); GDP per capita (US$); industrial production (%); unemployment (%)

Market Overview

Details of the freight infrastructure in each state by segment (road, rail, air, water and pipelines). Full analysis of the competitive landscape within each segment.

Political Outlook

The freight reports contain a chapter detailing the political outlook of a given region, examining the domestic politics, long-term outlook and foreign policy, and assessing the impact this could have on freight and transport businesses.

Company Profiles

Examines the short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT (Strengths, Weaknesses, Opportunities and Threats) analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc