Freight truckers’ strike disrupts supply and demand for building materials nationwide

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The Safe Trucking Freight Rates System was launched in 2020 to prevent dangerous driving and ensure minimum freight rates.
However, with the policy set to expire at the end of this year, freight truck drivers are on strike for the third day over their demands for an extension.

And as the walkout continues, the supply and demand cycle is experiencing disruptions.
Construction sites that are normally occupied by trucks carrying construction materials like cement and steel experience very minimal movement.

For cement factories, the abrupt suspension of freight transportation results in losses of some 15.3 billion won, or more than 12 million U.S. dollars, in daily sales.

“This is the second day that our shipments of cement products have stopped completely. If this situation continues for a few more days, it will become difficult for cement plants to supply materials to construction sites.”

The situation is the same for the supply of other construction raw materials such as steel, with large companies also being affected.
Hyundai’s steel mill in Pohang was unable to process any shipments for two consecutive days, and POSCO’s steel mill suspended 20,000 tons of its usual 49,000 tons of daily shipments.

And supply chain disruption could mean even more trouble ahead.

“Construction sites usually have a stockpile of essential materials that can last a few days. steel and therefore to construction sites”.

Construction companies in the Seoul metropolitan area are on the verge of bankruptcy and a prolonged strike would only worsen the situation for an industry already bearing the brunt of soaring diesel prices and rising fuel costs. construction materials.

Lee Eunjin, Arirang News.

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