Cement Industry, "Safety Freight Rate System Must Be Reconsidered"

Bulk cement trailers (BCT) are passing around the police deployed at a cement factory in Danyang, Chungbuk.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Jong-hwa] The cement industry stated on the 9th, "The existing Safe Freight Rate System, which has revealed limitations throughout the entire freight rate system, must be thoroughly reconsidered," and added, "We hope this will provide an opportunity for a more constructive discussion on the Safe Freight Rate System."

The Korea Cement Association expressed this position in a statement regarding the end of the Cargo Solidarity's collective transport refusal, also raising the necessity of forming a fair freight rate committee for genuine logistics advancement. Through this, they emphasized, "It is necessary to establish a fair and rational system that can satisfy the expectations of all stakeholders, including freight transport owners and cargo owners, by improving the cost calculation method and unreasonable subsidiary provisions."

The cement industry explained, "Amidst significant difficulties in management due to rising manufacturing costs caused by the surge in international raw material prices such as thermal coal and increased electricity rates, as well as excessive logistics costs under the Safe Freight Rate System, the collective transport refusal by Cargo Solidarity has halted product shipments, causing unprecedented damage."

Due to the collective transport refusal by Cargo Solidarity, which lasted a total of 16 days since the 24th of last month, the cement industry recorded a final sales loss of 118.8 billion KRW. In particular, this transport refusal period coincided with the peak season when cement shipments are the highest during the year, a critical time that determines the industry's annual business performance, which they expressed regret over.

Regarding the damage caused to construction sites due to the shipment halt, the cement industry stated, "Since the off-season winter period is approaching, there will be limitations in recovering the delayed construction schedules," and added, "We plan to do our utmost, including conducting shipments on weekends, to minimize the damage to the ready-mixed concrete industry and construction sites caused by the cement shipment halt."