Cargo Solidarity General Strike Impact... Food and Beverage Industry and Self-Employed 'Sweat It Out'

Cargo Solidarity General Strike Enters Sixth Day
Liquor Industry Still Faces Shipping Disruptions
Samdasoo Also Experiences Delivery Issues
Self-Employed Face Product Shortages

On the 7th, a kickoff rally for the general strike was held near the Inland Container Depot (ICD) in Uiwang-si, Gyeonggi Province, as the Cargo Solidarity Union launched a total strike demanding the abolition of the safety freight sunset system and an increase in transportation fees due to high oil prices. Photo by Moon Honam munonam@

[Asia Economy Reporter Song Seung-yoon] The ripple effects of the strike by cargo truck owners affiliated with the Korean Confederation of Trade Unions (KCTU) Cargo Solidarity continue.

First, in the food and beverage industry, the liquor sector is suffering the most damage. As of the 12th, HiteJinro is still experiencing delivery disruptions. Earlier, about 130 cargo truck owners belonging to Suyang Logistics, a freight transport subcontractor of HiteJinro, joined the KCTU Cargo Solidarity at the end of March and went on strike. Two factories handle 70% of HiteJinro's total soju production, but the product shipment rate dropped to as low as 38% of normal. Although contracts with other companies and logistics providers were made, shipment disruptions have yet to be resolved.

OB Beer has faced difficulties in shipping beer produced at three factories in Icheon, Cheongju, and Gwangju since the 7th due to the union's general strike. This is because cargo truck owners affiliated with Cargo Solidarity joined the general strike. OB Beer’s beer shipment volume fell to about 20% of the usual level. They plan to mobilize substitute vehicles to recover shipments to about half the normal level, but it is expected to take some time to return to normal.

Jeju Samdasoo also experienced delivery disruptions when transportation of Samdasoo from Jeju Port to the mainland was blocked temporarily, and even after the blockade was lifted, the strike caused transport to be blocked again, reducing Samdasoo supply volume to about 30-40% of the usual level. Other bottled water companies are closely monitoring the situation and are busy preparing countermeasures.

If this situation prolongs, it is expected that securing supplies will become difficult not only for convenience stores and large supermarkets but also for wholesalers and regular restaurants. Already, this weekend, restaurants and pubs in busy areas frequently experienced shortages of supplied liquor stocks. In some cases, customers switched to different types of alcoholic beverages or resorted to early stockpiling.

The Cargo Solidarity’s general strike has entered its sixth day today. The government is trying to find a compromise through practical consultations with Cargo Solidarity, but there has been little progress. Over the weekend, various logistics transport disruptions and minor clashes occurred across the country. Cargo Solidarity demands the abolition of the sunset clause of the 'Safe Freight Rate System,' expansion to all vehicle types and all product categories, and measures to address fuel costs in this strike. There are concerns that if the strike continues into next week, industries such as construction and steel could suffer greater damage due to shipment disruptions.