South Korean truck drivers start indefinite strike

Market: Metals, Petrochemicals
24/11/22

South Korean truck drivers have gone on strike for the second time this year, threatening to disrupt transportation of petrochemicals, metals and other commodity products.

Truckers began industrial action over pay and conditions on 24 November. At least 25,000 drivers are likely to join the indefinite strike, according to the International Transport Workers Federation (ITF), a global association that includes the Korean Public Service and Transport Workers' Union (KPTU) that is leading the strike.

A previous strike, in June, disrupted transportation and forced some South Korean petrochemical operators to cut run rates. That strike ended after eight days, although unions are now accusing the government of reneging on promises it made at the time to improve pay and working hours.

Truckers plan to block ports, petrochemical plants, industrial sites and logistics hubs, the ITF said. KPTU members make up only around 6pc of South Korea's road transport workforce but are concentrated in sectors such as steel, petrochemicals, import/export containers and the automobile supply chain, it said.

The strike has already affected polymers markets, with producers increasing shipments ahead of the start of industrial action. The current strike may have a bigger impact than the one in June, some producers warned.

The stoppage may also hit the supply chain for battery materials, especially for products shipped in containers such as cobalt hydroxide, cobalt metal, nickel metal and nickel sulphate, market participants said. A shortage of trucks to move empty containers to ports might also lead to a shortage of containers in the freight market.

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