The truckers Union of South Korea announced on November 23 that it would launch a nationwide strike from 0:00 local time on November 24. The "great disruption of logistics" that rocked South Korea's economy in June this year is about to happen again. Please pay attention to the impact of logistics delay for the freight forwarder who recently shipped to South Korea.

In January 2020, the South Korean government introduced a "safe freight system" for three years to guarantee minimum income and working conditions for truck drivers. As this system is about to expire, contradictions in all aspects become increasingly fierce. Finally, in June, the union's 25,000 members went on strike for eight days, briefly halting the logistics arteries of the Korean economy. The conflict came to a temporary end as the South Korean government pledged to move forward with a resolution.

The South Korean government estimates that the strikes in June cost 1.6 trillion won (1.2 billion U.S. dollars). The auto, chemical and steel industries were all affected, forcing major companies such as POSCO and Hyundai Motor to cut production.

Now it's going to happen all over again. With no progress in negotiations over the last few months, the union decided to strike again. In a statement, the truckers' union predicted that the strike would again cause "extremely slow" deliveries of fuel and cars, as well as disruption to the flow of goods to and from major ports and industrial centres.

The labor union is calling for a more complete extension of the safe freight system and the extension of the wage system to drivers in the chemical and agricultural industries from the cement and container shipping industries. There are several bills in the National Assembly that address these demands, but none have passed.

In response to the renewed strikes, Lee Jung-sik, South Korea's labor minister, called on unions to consider the current economic situation and try to avoid strikes, instead resolving issues through dialogue. Mr Lee also laid down his tough words, saying the government would crack down on any illegal activities by unions.

At a news conference on Nov. 22, Prime Minister Han Duck-soo urged the truckers union to cancel plans to strike this week to avoid irreversible damage.

In addition to truckers, subway workers and non-regular workers in the education system are expected to go on strike for the rest of November, according to local media reports, fueled by inflation. The damage may exceed that of June.

This is to remind the freight forwarders who have trade with South Korea recently to keep in touch with their customers in a timely manner and pay close attention to the delay and impact of the strike on cargo transportation! Please forward to us.