Distribution Industry Closely Watching Urea Solution Shortage... "Logistics Crisis Inevitable if Prolonged"

About 10% of delivery vehicles needed
Inventory remaining for about 2 to 3 months

On the 8th, a notice informing the shortage of urea solution was posted at a gas station in Yangcheon-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] The distribution industry is closely monitoring the shortage of urea solution caused by China. About 10% of all delivery vehicles require urea solution, but current stock is only sufficient for about 2 to 3 months. Although there is no immediate problem, if the situation prolongs, it could lead to a logistics crisis, prompting the industry to prepare countermeasures.

On the 9th, a representative from a large supermarket stated, "About 10% of the logistics vehicles we operate require urea solution, and we have secured stock for 2 to 3 months of use. Since the government has promised to resolve the urea solution supply issue, we will have to wait and see." An e-commerce official also said, "There are thousands of delivery vehicles in total, but the proportion requiring urea solution is not high. There is no immediate problem, but due to concerns about prolongation, we are securing as much urea solution as possible."

As urea solution sold out at large supermarkets and gas stations, overseas direct purchase companies have begun emergency procurement of urea solution for consumers. Korea Center Moltail has secured and is selling urea solution from the U.S. and Germany. These products are compatible with domestic diesel nitrogen oxide reduction devices (SCR systems). Moltail also plans to additionally supply Japanese-made urea solution.

This situation has drawn attention to whether the introduction schedule of electric vehicles in the distribution industry will accelerate. Lotte Super introduced 11 eco-friendly electric vehicles as delivery vehicles at some stores in the metropolitan area in February and is operating 75 vehicles as of the end of October. SSG.com currently operates about 10 electric trucks among its fresh product delivery vehicles. Hyundai Department Store has been conducting a pilot operation of short-distance food delivery services using electric vehicles since July and is analyzing the results. Hyundai Home Shopping has converted about 30% of same-day delivery vehicles to electric vehicles starting this month and plans to expand this to over 60% within the year.

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