Industrial Sites Bear the Full Brunt of the Cargo Solidarity Union Strike...

Port Container Import and Export Volume Down 60%
Severe Blow to Cement Industry in Peak Season
Steel Shipment Halt Triggers Emergency in Auto and Electronics Sectors

On the 24th, when the Cargo Solidarity Union began an indefinite general strike, containers were piled up behind the freight trucks stopped at the Uiwang Inland Container Terminal in Gyeonggi Province. Photo by Dongju Yoon doso7@

[Asia Economy Reporters Chawan-yong, Choi Dae-yeol] Cargo Solidarity workers affiliated with the Korean Confederation of Trade Unions (KCTU) have launched an indefinite full strike demanding the abolition of the sunset clause on the Safe Freight Rate System, causing widespread damage across industrial sites.

According to the Ministry of Land, Infrastructure and Transport on the 25th, the container import and export volume at 12 nationwide ports from 10 a.m. to 5 p.m. the previous day was 14,695 TEU (1 TEU equals one 20-foot container), which is 60% lower than the usual 36,655 TEU.

Companies are on high alert as the impact spreads across various industrial sites. The cement industry was hit the hardest first. Bulk Cement Trailer (BCT) operations stopped at cement plants nationwide, halting cement shipments. According to the Korea Cement Association, about 200,000 tons (t) of shipments were scheduled for the 24th, but due to the strike, actual shipments did not even reach 10,000 t.

Considering the recent Obong Station accident that disrupted cement supply and that November is the peak season for cement demand, there are concerns that the damage from this transportation refusal will be greater than in June.

Construction sites are also in emergency. The Dunchon Jugong Apartment reconstruction site in Gangdong-gu, Seoul, which is scheduled to begin sales early next month, faces the risk of ready-mixed concrete pouring being halted.

Damage is also occurring at frontline sites in major industries including the steel industry. At Hyundai Steel, shipments could not be made at nearby plants where a send-off ceremony was held at the start of the strike the previous day. About 50,000 tons of products from five plants nationwide are stuck.

A steel industry official expressed concern, saying, "In shipbuilding and automobiles, steel stockpiles have been secured, so production disruptions have not yet occurred, but if the strike prolongs, the damage from logistics paralysis will be severe."

The automobile and electronics industries are also experiencing shortages of materials as steel product shipments are blocked. The six economic organizations that held an emergency press conference the previous day stated, "The unilateral transportation refusal by Cargo Solidarity, which worsens export competitiveness, must be immediately withdrawn, and the Safe Freight Rate System should be abolished."