Disrupted Logistics Marks 4th Day of Truckers` Strike

Disrupted Logistics Marks 4th Day of Truckers` Strike. June. 17, 2008 03:54. daviskim@donga.com jefflee@donga.com.

With the truckers’ strike in its fourth day yesterday, major ports and inland container terminals handled just 10 percent of cargo in showing the paralysis suffered by the country’s logistics system.

Moreover, the Korean Federation of Construction Industry Trade Unions also went on strike yesterday, making the logistics disruption even more serious.

Under these circumstances, the government is considering issuing an official order to force truckers to go back to work.

▽ Construction unions launch strike

About 7,000 members of the construction union federation affiliated with the Korean Confederation of Trade Unions demanded a raise in construction machine rental fees to reflect higher oil prices. They also urged full implementation of a standard contract for construction machine rentals that requires clients to pay for fuel.

Baek Seok-geun, head of the construction union federation, said, “We’ll continue the strike until our demands are met.”

The 8,500 members of construction industry unions affiliated with the Federation of Korean Trade Unions also went on strike from midnight.

▽ Talks with shippers critical

The government is planning to hold negotiations today and tomorrow with shipping company groups, which have the power to raise transportation fees. Experts say the two days are critical for ending the strike.

Major ports across the country yesterday handled only about 15,000 TEUs of containers, or 18 to 21 percent of normal capacity. The operating ratio also dropped to the 10-percent range for the first time since the strike began.

The port of Gamman in Busan saw its container yard capacity filled more than 100 percent, but the ratio declined to 96 percent after shuttle vehicles handled part of the cargo. The ports of Gwangyang, Pyeongtaek-Dangjin and Ulsan also suffered rises in cargo occupancy of their container yards. More than 15,000 truckers refused to work yesterday.

The Knowledge Economy Ministry said losses from delayed customs procedures were an estimated 4.73 billion dollars as of yesterday. Import losses reached 2.42 billion dollars, slightly higher than export losses of 2.31 billion dollars.

▽ Gov’t considers forcing truckers to go back to work

The government will consider issuing an official directive to force truckers to go back to work.

The Cabinet can issue the order if the economy is at serious risk of damage by truckers collectively refusing to work without legitimate reason. Those who refuse to follow the order face up to three years in prison, 30 million won in fines or revocation of their transportation licenses.

The truckers’ union remained defiant against the proposed action, saying, “We will respond to such an order by filing a constitutional petition against it.”