South Korean workers march in support of striking truckers. Credit Democracy Now
South Korean container shipping companies will temporarily reduce the demurrage and detention charges that have been incurred as a result of delayed transport to and from ports due to the ongoing truckers’ strike.
The Korea Shipowners’ Association (KSA) announced yesterday that it had met with the Korea International Trade Association and the Korea Federation of SMEs, and at the latter two associations’ request, agreed to get its members to cut D&D charges to support shippers.
KSA vice-chairman Kim Young-moo said: “We will continue working together to address the current concerns of South Korean ship and cargo owners, to ensure our country’s economic health.”
Mr Kim said that the shipping companies will consult with the shippers with regard to the D&D adjustments.
Details of the D&D charges were not disclosed, but are believed to be substantial as the strike, which began 24 November, enters its third week.
In the first week, daily container traffic in South Korea’s main container port, Busan, was less than 20% of normal levels, but is now estimated to be about 81%, according to the Ministry of Land, Infrastructure and Transport.
However, the situation in Gwangyang, the country’s second busiest container port, is less rosy, with daily container flow being less than 10% of usual volumes.
The government’s resolve in not yielding to the truckers’ demands to make permanent the Safe Trucking Freight Rates System, launched during the early wave of the Covid-19 pandemic in 2020 and due to expire at end-2025, as well as executive orders issued by President Yoon Suk-yeol to compel cement truckers to resume work, appear to have had some effect. The president is also considering issuing a similar executive order targeting tanker truckers.
Minister of the Interior and Safety, Lee Sang-min, said today that 492 cement truck drivers had resumed work as of yesterday and 48 others have expressed an intent to return to work.
Mr Lee said that cement deliveries have recovered to about 90% of normal and the recovery rate for the deliveries of steel products stands at about 50%.
The number of petrol stations nationwide running out of fuel declined from 96 on Monday to 81 the following day.
Mr Lee added that truck drivers attempting to return to work, who have been attacked by their colleagues that are still participating in the walk-out, should be assured that his ministry will provide personal protection for truckers who face threats.
The government estimates that the strike has disrupted the delivery of at least $2.7bn of goods in the steel, petrochemicals, oil refining, cement, and automobile sectors.
