Delivery Industry Also Anxious... Deep Concern Over Prolonged Shortage of Urea Solution

On the 4th, a cargo truck stopped at the Western Truck Terminal in Yangcheon-gu, Seoul, where the shortage of diesel vehicle urea solution, an essential element for diesel vehicle operation, is worsening day by day. The government is reviewing all necessary measures to ensure the stable supply of urea solution, including resuming exports through consultations with China, converting industrial urea for vehicle use, import substitution, and customs clearance support. / Photo by Moon Honam munonam@

[Asia Economy Reporter Dongwoo Lee] The courier industry is on edge due to concerns over the prolonged shortage of urea solution originating from China. There are cases where large freight vehicles moving between regional logistics terminals are halting operations due to the burden of rising urea solution prices.

According to the courier industry on the 7th, it is expected that trunk courier vehicles operating between hub terminals and sub-terminals will be affected by the urea solution shortage starting this week.

In fact, for large trailers traveling from Seoul to Busan, most of the 10 liters of urea solution must be consumed, leading to an increase in freight drivers reluctant to undertake long-distance trips. Considering that the monthly installment for a large trailer is usually between 2 to 3 million KRW, the sharp rise in urea solution prices is directly hitting actual profits.

For small courier vehicles delivering to general customers, the possibility of immediate delivery disruptions is relatively low. Small courier vehicles can operate for about two months on average after a single refill of urea solution, providing some leeway. Additionally, many vehicles registered before 2015, prior to the mandatory installation of Selective Catalytic Reduction (SCR) systems, help mitigate the impact of the urea solution shortage to some extent.

However, if the urea solution shortage persists long-term, there are concerns that some small delivery vehicles may also face operational burdens. In such cases, timely delivery of customer goods could become difficult, potentially leading to a courier crisis.

The urea solution shortage is analyzed as a boomerang effect of relying on China for more than 97% of supply. Urea solution is an essential item for the SCR system, which is mandatory for trucks and other vehicles, decomposing carcinogenic nitrogen oxides (NOx) into nitrogen and water. When urea solution is insufficient, vehicle power is limited, speed decreases, and the engine may fail to restart once turned off.

The government is considering converting industrial-grade urea solution for vehicle use, but due to high impurity levels, practical application is expected to be difficult. Efforts are also underway to diversify urea import sources and request cooperation from the Chinese government, but the prevailing view is that resolving the urea solution shortage crisis will require a considerable amount of time.

A logistics industry official said, "If the urea solution shortage continues, an increase in logistics costs is inevitable," adding, "The longer the situation persists, the more the burden on consumers will increase, such as through higher delivery fees."

This content was produced with the assistance of AI translation services.