"Urgent Call for Swift Normalization of Export and Import Cargo Transportation"

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] As the collective transport refusal by the Cargo Solidarity enters its eighth day today, voices are rising to urge the prompt normalization of export-import cargo transportation.

The Korea International Trade Association, Korea Employers Federation, Korea Cement Association, Korea Iron and Steel Association, Korea Petrochemical Industry Association, Korea Automobile Manufacturers Association, and others held a press conference at COEX in Seoul on the 14th to report the damage caused by the Cargo Solidarity's collective transport refusal and to call for a swift return to normal operations.

At the conference, Lee Gwan-seop, Vice Chairman of the Korea International Trade Association, reported, "Major ports nationwide and key national production facilities have been paralyzed for over a week." According to the association, POSCO has been unable to ship about 20,000 tons of products daily, ultimately halting operations at its wire rod and cold-rolling plants. Hyundai Motor's Ulsan plant also faced transport refusals, forcing regular employees to move finished vehicles one by one to external storage yards, while repeated production stoppages occurred due to parts not being delivered from suppliers.

Major chemical companies in the Ulsan, Yeosu, and Daesan industrial complexes have seen shipment volumes drop to about 10% of normal levels, resulting in key materials that should be supplied to various sectors of our industry not being delivered on time. Export goods produced at workplaces nationwide are having their shipments canceled and failing to meet delivery deadlines continuously.

While the damage to core industries is significant, the problems faced by small and medium-sized export companies are understood to be even more severe. Vice Chairman Lee stated, "For small and medium-sized enterprises, even one or two shipment cancellations are critical issues that determine the survival of the company," adding, "Despite securing contracts with difficulty, preparing goods, and barely finding vessels amid a shortage of shipping space, contracts are being canceled because trucks to transport goods to the ports are not dispatched, causing transactions with important buyers to be interrupted one after another."

He continued, "There are also many cases where raw materials that have completed import customs clearance and are waiting at the port are not supplied to factories on time, causing production delays and missed delivery deadlines."

Vice Chairman Lee emphasized, "We strongly urge the Cargo Solidarity to return to work first from a magnanimous perspective, revive the halted export-import cargo transportation, and resume negotiations for mutual growth through dialogue."

He added, "Our 70,000 export companies and industry organizations have been striving with the mission to restore national economic vitality through exports, overcoming the long darkness of COVID-19, the global supply chain crisis, rising raw material prices, and increased logistics costs," and requested, "To ensure these efforts by export companies are not in vain, the government and Cargo Solidarity should promptly discuss a win-win solution regarding the safe freight rate system through dialogue."

Finally, Vice Chairman Lee stressed, "Companies and logistics are inseparable and mutually beneficial," and expressed hope that "Cargo Solidarity will first return to the negotiating table and seek reasonable measures for appropriate freight rates and system operation."

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