Delivery Stops Too... Minimal Urea Solution Measures, No Sharp 'Solution' (Comprehensive)

Long-distance operation of large freight trucks
"Even if you barely secure it for 100,000 won, operating Seoul~Busan route is difficult"

Parcel delivery industry's trunk vehicles
Countdown to operation suspension this week
Regional connections severed
Logistics paralysis risk within 1-2 weeks

Government imports 20,000ℓ from Australia
Late measures such as crackdowns on hoarding
Considering conversion from industrial to vehicle use

(Photo)

[Asia Economy reporters Joo Sang-don (Sejong), Lee Dong-woo] Due to the shortage of urea solution, the operation suspension of trunk vehicles traveling between major city logistics terminals has entered the countdown. If trunk vehicle operations stop, the logistics network that connects regions will fail to function properly, potentially causing the parcel delivery industry itself to come to a complete halt.

According to the parcel delivery industry on the 8th, due to the price surge caused by the urea solution shortage, the possibility of trunk vehicles suspending operations starting this week is increasing. Trunk vehicles are large logistics vehicles that travel between logistics terminals in major cities, serving as the main arteries of the logistics network. A logistics industry official said, "On-site, they are securing urea solution by paying extra for essential schedules and continuing operations, but there is growing concern that even this may become impossible in the near future."

◇Even paying 100,000 won for urea solution, operation is difficult= Before the shortage, the average price of urea solution was around 8,000 won per 10 liters, but now it is traded at about 100,000 won, more than ten times higher, mainly in the secondhand market. Accordingly, large freight truck owners who can operate 300~400 km per 10 liters of urea solution are now facing a situation where it is difficult to operate even the Seoul~Busan route with 100,000 won.

The increase in trunk vehicles suspending long-distance operations, such as those traveling from the metropolitan area to Busan, is also due to this background. The parcel delivery industry expects that if this situation continues, long-distance trunk vehicle operations will be completely suspended within this week. If this happens, small parcel delivery vehicles that deliver goods to households will not be able to operate as they will not receive timely logistics supply.

The parcel delivery industry is independently securing urea solution and expanding electric vehicle operations centered on directly employed delivery drivers, but it is realistically impossible to replace all delivery vehicles nationwide with eco-friendly ones immediately.

◇Government policy limited to crackdowns on hoarding and importing 20,000ℓ= Although the urea solution crisis is becoming a reality, the government's measures consist only of importing 20,000ℓ of urea solution from Australia this week and starting crackdowns on hoarding to stabilize domestic supply. The imported volume from Australia accounts for only about 3~4% of the total vehicle use. This is a government-wide measure announced about a month after the Chinese government tightened export regulations on urea solution, but it is criticized as a belated measure that cannot resolve the immediate supply instability.

The government began crackdowns on hoarding on the same day. Hong Jeong-gi, Vice Minister of Environment, said at a briefing, "We have deployed 108 personnel in 31 teams from the Ministry of Environment, Ministry of Trade, Industry and Energy, National Tax Service, Fair Trade Commission, and National Police Agency to inspect hoarding of urea solution and its raw material urea," adding, "Any illegal activities found during on-site investigations will be immediately investigated."

The Ministry of Environment estimates that the number of companies subject to this crackdown exceeds 10,000, including about 90 urea importers, 47 urea solution manufacturers, 5 importers, 100 intermediate distributors, and 10,000 gas stations. To enhance the effectiveness of the crackdown, the government plans to closely monitor the distribution flow of urea and urea solution nationwide and regionally to respond accordingly.

The government implemented the "Notice on Prohibition of Hoarding of Urea Solution and Its Raw Material Urea" from midnight on the same day. If storage exceeds 10% of the average monthly sales volume or if the imported, manufactured, or purchased goods are not sold within 10 days, violators may face imprisonment of up to 3 years or fines up to 100 million won.

The government plans to mobilize all available diplomatic capabilities beyond Australia to negotiate the import of several thousand tons from other urea-producing countries such as Vietnam within this year.

Attention is focused on whether industrial urea solution can be converted for vehicle use. The Ministry of Environment is currently reviewing whether "industrial urea and urea solution can be manufactured and used as vehicle urea solution." The results will be announced next week. Given concerns that logistics paralysis may occur within 1-2 weeks, this may be a belated measure. There is also concern that impurities may make even this use difficult.

The government started operating an inter-ministerial task force on the same day. Lee Eok-won, First Vice Minister of Strategy and Finance, chaired a first-level meeting with related ministries including the Ministry of Trade, Industry and Energy, Ministry of Environment, and Fair Trade Commission to discuss the urea solution crisis. This marks the start of the government's full-scale response three weeks after the Chinese government announced on the 15th of last month that it would strengthen export quarantine management of urea.

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