KITA calls for resumption of cargo transportation

Lee Kwan-sup, executive vice chairman of the Korea International Trade Association, center, speaks about the ongoing trucker strike at the Korea Shippers Council press conference held at the Trade Tower in Seoul, Tuesday. From left, Korea Cement Association General Manager Han Chan-soo, Lee and Korea Enterprises Federation Director Chang Jung-woo. / Courtesy of KITA

By Kim Hyun-bin

The Korea International Trade Association (KITA) is calling for the swift resumption of cargo transportation nationwide, claiming small companies have been suffering from the ongoing strike by truckers affiliated with the Korean Confederation of Trade Unions (KCTU), according to KITA officials, Tuesday.

"As the KCTU's refusal to transport is running into its 8th day, major ports and production facilities across the country have been paralyzed for over a week," KITA Executive Vice Chairman Lee Kwan-sup said during the KITA's Korea Shippers Council press conference at the Trade Tower in Seoul, Tuesday.

Due to the strike, POSCO has been failing to transport 35,000 tons of wire rods and cold-rolled steel products each day, and Hyundai Motor's Ulsan plant has suffered from disruptions in its operations due to the lack of parts available.

In addition, major chemical companies in Ulsan, Yeosu, and Daesan industrial complexes also reported that shipments remained at 10 percent of their usual levels, making it difficult for key materials to be supplied to each industry in a timely manner, the council said.

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The council emphasized that exports for small and medium-sized enterprises (SMEs) are facing a particularly serious crisis due to the strike.

"For SMEs, even one or two cancellations of shipments is an important issue that determines the survival of the company. There is a lot of damage caused by the disruption of transactions with buyers," Lee said.

In addition, raw materials that are at the port, after completing import customs clearance procedures, are not supplied to the factory on time, resulting in production delays and missed deliveries.

There are also cases of damage to agricultural and livestock products for export, such as fruit and vegetables produced by domestic farms not being loaded onto ships, resulting in huge storage costs or produce being discarded.

"The economic growth rate in the first quarter of this year is expected to drop by 0.7 percentage points compared to the previous quarter," he said. "I strongly urge the KCTU to return to work, revive import and export cargo transportation and resume negotiations for win-win growth amid the difficult economic situation," he said. "Companies and logistics are inseparable and have a mutually beneficial relationship, as logistics are considered the lifeline of our economy."

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