Economic globalization removes the border between companies of each countries. The importance of international logistics is being more and more critical as the point of various logistic activities such as production, distribution, consumption are not the same anymore. Henceforth, Northeast Asian economy is expected to achieve high growth constantly in comparison of other economic region in the world. For such a reason, increase in container traffic will be brought and intense competition is also expected between nations to attract cargo.
Generally, trans-shipment traffic is in the trend of increase since the growth of world's container market and ship upsizing trend. Furthermore, trans-shipment cargo create big added value.
Attracting trans-shipment cargo is a must do of Busan Port because now in South Korea, domestic manufacturers are moving out to foreign countries so Korea is losing its own domestic originated cargo traffic.
Hence, this study aims at figuring out the trend of trans-shipment traffic increase and movement and analysing trans-shipment figures of Busan, Japanese and Chinese ports to enhance the marketing strategy for Busan port by conducted O/D analysis of Busan port in Northeast region.
Currently, Asian ports are rising. Specially, port of Shanghai is now ranked 2nd among the all ports in the world. Based on increase of container throughput, trans-shipment market in this region has been also developed and the competition between Busan, Yangshan new port(Shanghai), Singapore, Tanjung Pelepas, Kao-hsiung, Hong Kong and Shenzhen are very fierce promising incentives to provide.
The analysis of trans-sihpment over East Asia shows inbound shipment from Japan, outbound to china and vice versa are increasing year by year. This denotes that Busan port takes advantages from its geopolitical condition, lower cost of labor than Japanese port and more advanced system than Chinese port. Busan port takes an important role as an intermediary trade port between Japan and China. In conclusion, port policy and strategy to attract transshipment cargo must be developed taking all these conditions into consideration.