South Korean truckers blame semiconductor production and slow ports

South Korean truckers blame semiconductor production and slow ports

June 13, 2022: -On Friday, South Korean truckers embarked on broader and more aggressive strike action, threatening to curtail deliveries of semiconductors and petrochemical products.

On its fourth day, the strike protesting increasing fuel costs halved production at Hyundai Motor’s massive factory complex on Thursday and has paused shipments for a few companies, which include steelmaking giant POSCO.

Container traffic at ports has slowed sharply. At Busan port, accountable for 80% of the container activity in the country, a government official said traffic was down to a third of normal levels on Friday.

At Incheon port, it has decreased to 20% of normal levels, while at the port for Ulsan, the industrial hub where the strike has taken place, container traffic has been wholly suspended since Tuesday.

The transport ministry said that some 7,500 members, or almost 35% of the Cargo Truckers Solidarity union, will be on strike on Friday. According to the government, 420,000 truck drivers belong to a union, about 6% of the country.

The union has argued that the numbers on strike are higher than government estimates and that many non-union truckers refuse to work.

South Korea is a significant supplier of semiconductors, smartphones, autos, batteries, and electronics goods. The recent industrial action further raises uncertainty over global supply chains disrupted by strict Covid restrictions on China and Russia’s invasion of Ukraine.

Faced with one of his first significant economic challenges, new President Yoon Suk-yeol has taken a neutral stance, which says the government should not be involved too much.

That has alarmed a few observers, who say Yoon’s remarks could hinder the ability of the government to come up with a solution.

On Friday, the union said a meeting with the government concluded without an agreement, and they would now meet on Saturday.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Noodle.ai | Make Profit Not Waste | Stephen Pratt

Supply chain leaders, including VPs, often find themselves making bets with unknown financial consequences. Having started with largely infeasible plans generated by deterministic “one-number” planning systems, compounded by unexpected supply or demand disruptions, they are forced into last-minute adjustments to meet operational and financial goals.

Intelichain | Revolutionary Supply Chain Planning Solutions | Roei Aviram

Unsurprisingly, today’s supply chain faces numerous issues, including sustainability, technology, global economic and political instability, talent management, and supply chain resilience. Advanced forecasting algorithms and predictive analytics are used in supply chain management to help organizations of all sizes make better decisions by providing insights into what’s going on in their business at any given moment and predicting future trends.

GAINS | Empowering Companies to Make the Right Decision | Bill Benton

Ensuring the right products are in the right place and at the right time is critical for companies also dealing with supply chain constraints and a high degree of variability. Uncertainty has become the name of the game and the only way to effectively optimize inventory through continuous, data-driven assessments, planning, and decision-making.

Extensiv | Creating the Future of Omnichannel Fulfillment | Sheridan Richey

Food Huggers, a consumer brand that designs products to reduce waste at home, may be in an enviable position now but before they found Extensiv Order Manager, managing booming orders and staying on top of inventory was a huge operational challenge. The business has inventory spread across multiple geographically distributed warehouses, with orders received via multiple sales channels, including Shopify storefronts and Amazon.

South Korean truckers blame semiconductor production and slow ports