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...
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.
- 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).
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 (%)
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.
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.
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.