[Special Stock] Taewoong Logics Declares Non-Intervention in US Government Port Union Strike... Highlighting Potential Surge in Logistics Costs↑

Taewoong Logistics is showing strength. It is interpreted that this was influenced by the news that the U.S. government declared non-intervention in the port union strike.

As of 1:45 PM on the 30th, Taewoong Logistics is trading at 3,260 KRW, up 2.84% from the previous day.

The International Longshoremen's Association (ILA) in the U.S. plans to strike starting from the 1st if no agreement is reached with the United States Maritime Alliance (USMX). Approximately 25,000 union members will participate. The strike will target ports mainly on the U.S. East Coast, such as New York and Houston, and it is expected to affect about 41% of the total U.S. port cargo volume.

If this strike materializes, it is expected to cause global logistics congestion, not just in the U.S. The industry anticipates a high possibility of rerouting to alternative ports on the U.S. West Coast, which is already handling a significant amount of cargo.

In particular, U.S. President Joe Biden stated that the government will not intervene to stop the ILA strike. President Biden told reporters, "This is a matter of collective bargaining and does not fall under the Taft-Hartley Act."

Meanwhile, Taewoong Logistics is a third-party logistics company providing comprehensive logistics services to clients worldwide through maritime, air, and rail transport. There is an expectation that if logistics costs surge due to the U.S. port strike, the company could achieve strong performance.