Korean ports nationwide came to a standstill as the truckers' strike over high fuel prices entered the fourth day.
The entire economy is threatened as construction equipment operators' union were set to go on strike today and the Korea Confederation of Trade Union is awaiting a final vote before launching a general walkout.
Work at ports across the nation has come to a virtual standstill, while a growing number of firms are giving up on export amid mounting inventories.
According to industry sources, some small and medium-sized businesses have suspended production in the face of walkouts by unionised truckers and their pressure on other truckers.
Larger firms, including makers of cars, electronics, and paper products, are also having trouble producing and shipping products with import and export halted and inland transport remaining in a deep freeze for the time being.
Companies engaged in secondary processing, which use petrochemical products as raw materials, are also being forced to suspend plant operations.
The Daesan Petrochemical Complex has about 100,000 tonnes in extra inventory being kept in stock, as its daily shipment volume of 15,000 tonnes has not been shipped for days. Hyundai Motor and its affiliate Kia Motors normally ship 900 to 1,000 units on average per day for export, but are currently shipping only five percent of that total.
According to a government ministry, the three-day strike by truckers, Korea has disrupted trade valued at US$1.31 billion, including exports worth $641 million.
Movement of cargo containers through the country's biggest port of Busan picked up slightly due as replacement drivers were brought in, but remained precariously slow, with the port's container yard filled to 85 percent capacity, a port authority official said by telephone.
At Incheon, west of Seoul, the yard was filled to 75 percent capacity, 52 percent in Ulsan, 45 percent in Pyeongtaek and 32 percent in Gwangyang.
The government and the ruling party agreed to form a task force to work out measures to improve the current multi-step cargo transportation system during an emergency meeting yesterday.
Pointing out that truckers only take home 60-70 percent of the transportation fees paid by their clients, government officials and Grand National Party lawmakers stressed that consignors and companies in the transportation industry must take an active role in "sharing the burden of truckers".
They agreed to create a task force - including experts, government officials and industry representatives - to devise necessary laws and policies aiming to alter the transportation system across the country.
"The previous relief measures taken by the government were only a temporary stop-gap plan that failed to present a real solution to the problem," said GNP floor leader Hong Joon-pyo. "The conglomerates and business giants that greatly benefit from the rising exchange rate must distribute some of their gains."
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