Industry Urges "Urgent Normalization of Logistics... Request Cargo Solidarity Union to Return to Work" (Comprehensive)

(From left) Kim Pyeongjung, Director of Korea Petrochemical Industry Association; Kim Youngmin, Director of Korea Cement Association; Lee Gwansub, Vice Chairman of Korea International Trade Association; Jang Jungwoo, Director of Korea Employers Federation; Hong Jeongui, Manager of Korea Iron and Steel Association; Yoon Kyungseon, Manager of Korea Automobile Manufacturers Association

[Asia Economy Reporter Jin-ho Kim] The Korea International Trade Association's Shipper Council has raised concerns over the severe damage to export small and medium-sized enterprises (SMEs) caused by the total strike of the Cargo Solidarity Union and has called for prompt normalization of cargo transportation. As the damage spreads across industries such as steel, cement, petrochemicals, and automobiles, industry-specific associations have also requested the Cargo Solidarity Union to return to work.

On the 14th, the Shipper Council along with the Korea Iron & Steel Association, Korea Cement Association, Korea Petrochemical Industry Association, and other industry associations held a press conference at the Trade Tower in Samseong-dong, Gangnam-gu, Seoul, demanding the withdrawal of the Cargo Solidarity Union's strike.

The Shipper Council stated, "As the Cargo Solidarity Union's collective refusal to transport enters its eighth day, major ports nationwide and key national production facilities have been paralyzed for over a week," adding, "Shipments of export goods are being canceled at workplaces across the country, and delays in meeting delivery deadlines continue to occur."

According to them, POSCO has been unable to ship about 20,000 tons daily from the Pohang Steelworks and about 15,000 tons from the Gwangyang Steelworks, leading to the suspension of operations at the wire rod and cold-rolling plants. Hyundai Motor's Ulsan plant is also experiencing ongoing production disruptions due to parts not being delivered, indicating growing damage, the Shipper Council reported.

They also explained that major chemical companies in the Ulsan, Yeosu, and Daesan industrial complexes are shipping only about 10% of their usual volume, resulting in key materials that should be supplied to various industries not being transported on time.

The Shipper Council emphasized that export SMEs are facing a serious crisis due to the Cargo Solidarity Union's total strike. The council said, "For SMEs, even one or two shipment cancellations are critical issues that determine the survival of the company," and lamented, "Despite barely securing vessels amid a shortage of shipping space, contracts are being canceled because trucks to transport goods to the ports are not dispatched, causing transactions with important buyers to be interrupted."

At the press conference, representatives from industry associations including Hong Jeong-ui, Director of the Korea Iron & Steel Association; Kim Young-min, Director of the Korea Cement Association; Kim Pyeong-jung, Head of the Korea Petrochemical Industry Association; Yoon Kyung-sun, Director of the Korea Automobile Manufacturers Association; and Jang Jeong-woo, Head of the Korea Employers Federation (KEF), attended to report on the damage across industries and urged a swift withdrawal of the strike.

Director Kim said, "Yesterday's cement shipments were only about 20,000 tons, which is 13% of the usual shipment volume," adding, "Additional disruptions amount to 156,000 tons, causing losses of approximately 14.5 billion KRW in just one day, with cumulative losses since the strike began reaching 91.2 billion KRW."

He further added, "As cement shipments have stopped, cement companies are reaching their inventory capacity limits, and if the strike does not end, major production facilities such as kilns are expected to halt operations by the end of this week."

Director Hong also stated, "As announced through the Ministry of Trade, Industry and Energy yesterday, the steel industry's shipment damage up to the 12th has totaled 450,000 tons, amounting to about 700 billion KRW," adding, "If small and medium-sized enterprises that reprocess steel and supply it to automobile companies are included, the damage scale is even larger," and lamented, "Due to a lack of storage space, the production stoppage may expand to steel products such as heavy plates and hot-rolled steel sheets."

Head Kim said, "In the petrochemical industry, some companies have already reduced or stopped plant operations since last weekend, and currently only 10% of the volume is being shipped," adding, "It is expected that many companies' naphtha cracking centers (NCC) will cease operations by tomorrow evening, making midweek the deadline."

Director Yoon also said, "As of yesterday, about 5,700 production disruptions have been identified," and added, "From the latter half of the week, production disruptions are expected to expand across the entire automobile industry."