Cargo Solidarity Strike Causes Numerous Damages... Total of 160 Reports Filed by the 13th

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] Company A, which produces chemicals domestically and sells them in the local market, is currently facing significant disruptions due to the Cargo Solidarity Union strike. The company needs to transport imported raw material cargo to its headquarters, but even its own truck transportation is hindered by sanctions from the Cargo Solidarity Union. Due to the shortage of raw materials for production input, Company A has suffered damages amounting to approximately 200 million KRW.

The Korea International Trade Association (KITA) announced that as of the 13th, a total of 160 complaints related to the Cargo Solidarity Union strike by the Korean Confederation of Trade Unions (KCTU) have been received from cargo owners via phone and online channels.

According to KITA, among the 160 complaints received by 9 a.m. that day, 55 cases (34.4%) were related to imports, including 25 cases (15.6%) of raw material procurement disruptions, 15 cases (9.4%) of production stoppages, and 15 cases (9.%) of increased logistics costs. Export-related complaints accounted for 105 cases (65.6%), making up more than half. Among these, 40 cases (25.0%) involved delivery delays, 35 cases (21.9%) involved penalty fees, and 30 cases (18.8%) involved shipping disruptions.

In the midst of a global logistics crisis causing a shortage of vessels for exporting products, cargo owners have reported numerous cases of losing secured vessels due to delays in export transportation caused by the Cargo Solidarity Union strike.

Company B, which produces and exports Samgyetang and duck down, suffered damages of 60 million KRW over three days due to the nature of duck down, which must be shipped immediately after production. Company C, which exports railway vehicle parts, faced a production line halt and is at risk of losses amounting to tens of billions of KRW after failing to receive cargo imported from China at Incheon Port.

Meanwhile, KITA is operating a complaint reporting center, collecting information through regional headquarters and its own network, and responding by surveying the demand for military-commissioned cargo vehicles and making recommendations to the Emergency Transport Committee.