Cargo Solidarity General Strike Enters Fifth Day... Over 50 Difficulty Reports Received

Most Complaints Received Regarding Penalties Due to Delivery Delays

[Image source=Yonhap News]

[Asia Economy Reporter Sunmi Park] As the general strike by the Cargo Solidarity Headquarters of the Korean Public Service and Transport Workers' Union (hereinafter Cargo Solidarity) enters its fifth day, causing increasing logistics damage, the Korea International Trade Association announced on the 28th that it has received 56 complaints from 32 cargo owners.

According to the Trade Association, the types of complaints received from the 23rd until 9 a.m. on this day (multiple selections allowed) were ▲ 25 cases (45%) of penalty fees due to delivery delays and severed overseas buyer relationships, which was the most frequent, followed by ▲ 16 cases (29%) of increased logistics costs due to Cargo Solidarity's collective refusal to transport. ▲ Production stoppages due to disruptions in the import of raw and subsidiary materials (13 cases, 23%), and ▲ 2 cases (4%) of product disposal caused by disruptions in factory and port shipments were also reported.

Company A, which exports recycled tires and other products, expressed difficulties due to additional export order delays or cancellations caused by delivery delays. Especially, since this is the year-end period with the highest volume, the damage is even greater. The inability to procure raw materials has also caused production disruptions at the factory, leading to delays in the import of new tires and domestic deliveries, which has lowered the company's credibility.

Amid a flood of damage reports, the Ministry of Land, Infrastructure and Transport judged that the damage situation is gradually worsening as Cargo Solidarity's collective refusal to transport continues, and raised the crisis alert level for the land freight transport sector from 'Caution' to 'Severe.' This upgrade in the crisis alert level is interpreted as a measure considering the nationwide spread of Cargo Solidarity's transport refusal, ongoing transport disruptions at major logistics facilities such as ports, and disruptions in handling import and export cargo.