Cargo Solidarity Strike Enters 11th Day... Petrochemical Industry Suffers 1 Trillion Won Loss

As the Cargo Solidarity Union strike continues, containers are piling up at the open yard of Sinsundae Pier in Nam-gu, Busan. (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] As the Cargo Solidarity strike continues into its 11th day, the disruption in petrochemical shipments has exceeded 1 trillion won. The government emphasized that it will respond strongly to this strike.

According to the Ministry of Trade, Industry and Energy on the 4th, the cumulative volume of disrupted shipments in the petrochemical industry over the past ten days is approximately 781,000 tons, which is estimated to amount to 1.0173 trillion won. The industry is facing difficulties securing container transport personnel and transportation for export shipments, shipping about 21% compared to normal times.

In particular, the industry is concerned that if there are disruptions in the transport of essential products that must be shipped daily or if the prolonged situation causes a shortage of storage space within factories and yards, in the worst case, it could lead to factory shutdowns.

Jang Young-jin, the first vice minister of the Ministry of Trade, Industry and Energy, visited the Daehan Petrochemical Ulsan plant to inspect the site. Vice Minister Jang stated, "Petrochemical products are key raw materials used in major industries such as construction, electrical and electronics, and automobiles," and urged, "If there are any transport obstructions or retaliatory acts by the Cargo Solidarity, please promptly seek cooperation from the police and others."

The government is considering issuing work commencement orders for other industries suffering increasing damage following the cement sector. Additionally, major economic organizations and industry associations such as the Korea International Trade Association, Korea Petrochemical Industry Association, Korea Iron & Steel Association, Korea Automobile Manufacturers Association, and Automobile Industry Cooperative are reviewing support measures including representing small and medium-sized cargo owners in damage compensation lawsuits caused by the Cargo Solidarity strike.