Disruption in Cement Supply Due to Hwamyulyeondae Strike

Strike for Three Days Starting the 25th, Vehicle Access Blocked, Transport Halted

Cargo vehicles belonging to the Cargo Solidarity blocking the main gate of a cement factory in Danyang, Chungbuk, and a warning sign preventing shipment.
[Photo by Korea Cement Association]

[Asia Economy Reporter Kim Jong-hwa] Disruptions are occurring in the supply of cement and ready-mixed concrete. As the Cargo Solidarity Union (Hwamulyeondae) begins a three-day strike starting on the 25th, delays in cement deliveries have become inevitable.

According to the cement industry, as of 11 a.m., shipments of cement have virtually stopped in the metropolitan area and around production plants due to the Cargo Solidarity Union's strike. The union blocked the vehicle access road to the Uiwang distribution base, where cement storage silos are concentrated, resulting in a complete halt of cement transportation. The Uiwang base houses storage facilities for seven major domestic cement companies, including Ssangyong C&E, Hanil Cement, Sungshin Cement, Asia Cement, and Hyundai Cement.

In addition, access roads and entrances to distribution bases in Susaek, Incheon, Gwangyang, Deokso, and Paldang have been blocked, stopping shipments.

A cement industry official said, "From early morning, Cargo Solidarity Union vehicles have blocked the access roads, preventing bulk cement trailer (BCT) trucks from entering or leaving," adding, "There will be some disruptions in cement deliveries to construction sites in the metropolitan area."

A ready-mixed concrete industry official stated, "After the urea solution crisis was resolved, a logistics crisis has hit. Adverse factors are piling up. We are worried that the worst-case scenario of ready-mixed concrete operations being halted may occur."

The Ministry of Land, Infrastructure and Transport assesses that the impact of the strike will be limited since the Cargo Solidarity Union members account for about 5% (22,000 vehicles) of all commercial freight trucks. However, container trucks (8,500 vehicles) and cement freight trucks (1,500 vehicles), which are subject to the safety freight rate system piloted for cement items, have a high union membership rate, raising concerns that transportation disruptions are unavoidable.

An official from the Korea Cement Association said, "The cement industry secured inventory in advance through pre-transportation to distribution bases and major clients before the strike, but if the strike prolongs, damage is inevitable," adding, "We only hope that this does not escalate into a logistics crisis."