Trucker strike ends, shipments returning to normal

Industry

Published: 15 Jun. 2022, 18:26 Updated: 15 Jun. 2022, 18:38

Trucker strike ends, shipments returning to normal

Trucks enter Posco's steel mill in Gwangyang, South Jeolla, on Wednesday as the trucker strike ends and drivers return to work. [YONHAP]

Shipments are returning to normal after a trucker strike ended Wednesday with a possible extension of measures that support cargo rates.

The stoppage by truck drivers organized by the Cargo Truckers Society wreaked havoc on a number of key industries and threatened to derail an already teetering economy.

It started on June 7.

Under the deal hammered out with the Ministry of Land, Infrastructure and Transport, the so-called freight charge system — a system that requires minimum payments to container, cement and cargo truck drivers — will be discussed again by the National Assembly for possible extension.

The system, implemented in 2020, is slated to end in December.

Discussions to give fuel subsidies to the truckers will also take place in the National Assembly. The truck drivers on strike have been asking for the subsidy, saying they are struggling due to surging fuel costs.

Although an agreement was reached, the ministry said the National Assembly discussions will be about extending the measures rather than making them permanent.

"The Cargo Truckers Society strongly requested the freight charge system to be implemented permanently, but that was hard to accept," said Eo Myeong-so, vice minister of transport, on Wednesday. "After negotiations, we agreed to help temporarily continue the support measures."

Despite the ministry saying it agreed to assist with a temporary extension, unionized truckers have a different interpretation.

"We understand the agreement with the ministry as a decision to make the freight charge system permanent," said Lee Bong-joo, head of the Cargo Truckers Society. "We hope the government and the transport ministry doesn't alter the agreement."

Business lobbying groups say the extension is bound to cost companies more. The Korea Enterprises Federation argues the support system increases logistical costs for companies by 30 to 40 percent.

"We want to express our regret that the freight charge system won't end as planned, with opinions of businesses not taken into consideration," said the Korea Chamber of Commerce and Industry via statement released Wednesday. "The extension of the system will be decided at the National Assembly, and we hope the system is amended and improved so it won't be too harsh for the cargo owners."

Although more discussions are needed, shipments are returning to normal due to the tentative agreement.

Posco resumed shipments of steel products starting Wednesday. Production lines making wire rods and cold-rolled steel at the Pohang steel mill stopped Monday, but started operating again.

Trucks supplying car parts are going in and out of Hyundai Motor's Ulsan plant, with production back to normal. During the strike, production at the factory, which normally makes 6,000 cars a day, was cut in half.

Incheon Port had a port equipment rate of 84.9 percent as of Wednesday 10 a.m., up 5.8 percentage points from the average rate in May. The rate shows how much containerized cargo is at the ports compared to the total capacity, and a figure above 80 percent indicates the port needs more room.

Trucks started delivering containers from the port to their destinations on Wednesday, and the figure is expected to fall to normal levels soon.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]