Largest Since First Transport Refusal in 2003... Exceeds Damage from First June Transport Refusal
"Government's Prompt and Effective Measures Accelerate Shipment Growth"
[Asia Economy Reporter Kim Jong-hwa] The total damage to the cement industry due to the nationwide strike by the Cargo Solidarity, a branch of the Korean Public Service and Transport Workers' Union under the Korean Confederation of Trade Unions, has reached 111 billion KRW.
According to the Korea Cement Association on the 2nd, the cement industry shipped about 114,000 tons out of approximately 180,000 tons scheduled for shipment that day due to the collective transport refusal by Cargo Solidarity. The shipment rate rose to around 63% as non-union bulk cement trailer (BCT) drivers returned earlier following the government's work commencement order.
The 66,000 tons that were not shipped translate to about 6.6 billion KRW, bringing the cumulative damage to 111 billion KRW. From this point, the damage amount has surpassed the 106.1 billion KRW loss during the first 8-day collective transport refusal period by Cargo Solidarity starting in June. This is the largest damage the cement industry has suffered from land shipment disruptions since Cargo Solidarity's first transport refusal incident in 2003, and it is expected to continue for a considerable period.
A Korea Cement Association official stated, "Fortunately, the shipment recovery rate has exceeded expectations, reaching the 63% level before the transport refusal, rather than just recovering to the 50% range by this weekend," and added, "The government's firm law enforcement to normalize logistics and swift, effective measures will further accelerate the increase in cement shipments."
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