Korean Truckers Strike over Fuel Costs

A nationwide strike by South Korean truckers has all but shut down the East Asian nation's ports and cargo movement, the Korea Herald reported Friday.

   The strike was held to protest escalating fuel prices. Roughly 5,000 truckers, mostly seaport and factory drivers who are members of the Korea Cargo Transport Workers Union, walked out Thursday -- some literally sat down on the job at a container depot. The newspaper said a healthy number of non-union drivers also went on strike.

   The thrust of the protest is to bring attention to soaring diesel costs. Like port truckers in most U.S. ports, most harbor drivers are self-employed and feel the full effect of fuel cost increases.

   They are demanding a guaranteed minimum haulage rate to offset the skyrocketing fuel prices, the report said.

   Meanwhile, the Korea International Trade Association said the strike is estimated to be costing South Korea $120 million daily.

   The Korean government announced a package of tax rebates and fuel subsidies for truckers earlier this week in a bid to stave off the strike, but to no avail. Now there are concerns that the strike could have long-lasting effects on Korea's international trade, as its Port of Busan is one of the world's five busiest ports. The government aims to turn itself into a logistics hub for Northeast Asia by offering value-added services for goods transshipped to and from China.

   Truckers in South Korea have a good deal of clout politically, especially in Busan. Their reluctance to migrate over to the Busan Newport (about 25 kilometers away from the old port) has caused TEU volumes through the Newport to look more sluggish than they ordinarily would have.

Source: Americanshipper