South Korean industries face losses worth $1.2 bln due to trucker strike, military deploys trucks to ship containers
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SEOUL, June 13 (Reuters) – South Korean industries, including auto, steel, petrochemical and cement, face accumulated losses worth about 1.6 trillion won ($1.24 billion) as of Sunday due to the ongoing trucker strike, the country’s industry ministry said on Monday.
The industry ministry said in a statement the estimated 1.6 trillion won was based on losses in production, shipment and exports.
South Korea military is operating some 100 cargo trucks consigned by the Ministry of Transport to ship containers in and out of major ports including Busan to respond to a nationwide truckers strike that began on June 7, the Ministry of Oceans and Fisheries said on Monday.
epa10010366 Unionized truckers of the militant Korean Confederation of Trade Unions rally as a freight truck drives past them at the Inland Container Depot, a logistics hub, in Uiwang, South Korea, 13 June 2022. On 07 June, the union went on an indefinite strike nationwide, demanding the extension of a basic freight rate system guaranteeing their basic wages. EPA-EFE/YONHAP
The military is shipping containers to and from locations primarily in short distances with the ports to free up space, the ministry said.
South Korean petrochemical firms on Monday joined the automobile and steel makers in cutting operations due to mounting inventories as transport disruptions from a strike by truckers spread quickly across Asia’s manufacturing powerhouse.
The industry association representing 32 petrochemical companies in South Korea said the average daily ex-factory shipments of their member companies had plunged by 90% due to the strike, now in its seventh day.
“The Cargo Truckers Solidarity union’s collective action to reject transportation is spreading the damage to major petrochemical complexes in Ulsan, Yeosu and Daesan,” the Korea Petrochemical Industry Association said in a statement.
The 22,000-strong union is protesting against soaring fuel prices and demanding minimum pay guarantees. Four rounds of negotiations with the government have failed to find a compromise.
It was not confirmed whether companies have already cut operations, but a source at a major petrochemical company told Reuters most firms were still storing finished products with the hope of resuming transportation.
Automakers, hit hard as they were not able to receive a timely supply of components and transport finished products, also formed a task-force team within their trade association to monitor the situation and call for an early resolution.
