Cargo Solidarity Strike Enters Tenth Day... Steel and Tire Industries Suffer Increased Damage, Cement Shows Recovery Trend

The nationwide general strike (transport refusal) by the Cargo Solidarity Headquarters of the Public Transport Union under the Korean Confederation of Trade Unions (KCTU) has been ongoing for ten days. Due to logistics disruptions, damage is spreading in the steel and tire industries. However, since the commencement order, shipments of cement and port cargo volumes have shown signs of recovery.
[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The nationwide strike (transport refusal) by the Cargo Solidarity Headquarters of the Public Transport Workers' Union under the Korean Confederation of Trade Unions (KCTU) has entered its tenth day. Disruptions in logistics are causing expanding damage to the steel and tire industries. However, since the issuance of the work commencement order, cement shipment volumes and port cargo throughput have shown signs of recovery.

The Yeosu National Industrial Complex and Gwangyang Steelworks, home to the country's largest petrochemical and steel companies, are experiencing increasing damage due to the prolonged strike. Although urgent shipments are being transported through negotiations with the Cargo Solidarity, daily transport volumes have dropped to about 8% compared to pre-strike levels. If this situation continues, companies are expected to halt operations of some facilities starting next week.

Hyundai Steel is unable to ship approximately 50,000 tons of steel products daily from its five domestic plants, including Incheon and Dangjin. The Pohang Steel Industrial Complex has so far failed to ship 106,000 tons of steel products, resulting in increased inventory and sales losses.

The tire industry is facing a similar situation. Korea Tire's Daejeon and Geumsan plants, the largest tire manufacturer in the country, have seen container in/out rates plummet to the 40% range of normal levels. Kumho Tire has virtually halted the receipt of raw and subsidiary materials and the shipment of finished tires, deciding to reduce production until the 7th.

However, cement shipment volumes and port cargo throughput are showing signs of recovery. Cement shipments from cement companies in Jecheon and Danyang, Chungbuk Province, are recovering to nearly 80% of normal levels. Sungshin Cement's Danyang plant shipped 18,403 tons of cement yesterday, including 582 Bulk Cement Trailer (BCT) loads, via vehicles and railways, which is about 76% of usual shipment volume.

The cargo throughput at Incheon Port, which had sharply declined, is also recovering. From 5 p.m. yesterday to 10 a.m. today, the cargo throughput at Incheon Port's container terminal was recorded at 4,225 TEU (1 TEU equals one 20-foot container). This is about 82.8% of the average throughput of 5,103 TEU during the same period last month.

The daily cargo throughput at the Uiwang Inland Container Depot (ICD) yesterday was 828 TEU, roughly double the 401 TEU recorded on the 1st.

Meanwhile, the number of gas stations nationwide running out of fuel increased by 8 from the previous day to 60. By fuel type, 41 stations were out of gasoline, 13 out of diesel, and 6 stations were out of both gasoline and diesel. By region, there were 22 in Seoul, 16 in Gyeonggi, 1 in Incheon, 11 in Chungnam, 4 in Gangwon, 3 in Chungbuk, 1 in Sejong, and 2 in Jeonbuk.

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