From Korea Herald
The protracted strike by truck drivers is a nightmare for Korean exporters, with the paralysis of the nation`s two key ports of Busan and Gwangyang expected to cost them up to $182 million in revenue each day.
Drivers in Busan, the nation`s largest port handling nearly 80 percent of total shipping, voted Monday to continue their walkout that began Friday, raising fears that soon all operations there would grind to a standstill.
The Korea International Trade Association warned that a few more days of transportation blockage would completely cripple major local manufacturing lines, thus undermining the nation`s international image.
KITA statistics showed that as of yesterday, a total of 8,217 TEU (20-foot equivalent unit) containers remained unshipped in Busan, causing some $200 million in damage. The southwestern port of Gwangyang is also seeing an average of 850 TEUs, worth $14.9 million, piling up each day.
The combined amount of damage has reached $340 million, while the daily loss is expected to top $182 million, or about 7,700 TEUs, according to KITA.
"Some electronics manufacturers, in particular, would have to shut down their factories should the strike continue through Thursday, as they are running out of both raw materials and storage space," a KITA official said.
Samsung Electronics, the world`s largest memory chipmaker, said it had shipped only about 30 out of 400 FEUs (40-foot equivalent units) that were originally scheduled to leave Busan by Monday.
Cargo deliveries from its manufacturing lines in Gwangju, Suwon and Gumi are also nearly at a halt, Samsung officials said.
According to LG Electronics, a home appliance giant, the paralysis of Busan port, which usually handles 90 percent of its exports, has meant about 80 percent of its outbound cargo is amassing unshipped.
Daewoo Electronics also failed to ship up to 200 TEUs, worth $3 million, so far and has an additional 600 TEUs scheduled for this week, according to KITA.
Korean automobile and tire exporters were also stung by the strike.
Kumho Tires said it has suspended container cargo shipments. Hankook Tires, which imports most raw materials through Busan, said it is looking for a substitute port.
Big automobile exporters using their own docks have so far contained the fallout from the transportation paralysis. But industry watchers said the difficulty in importing auto parts would hit the industry in several weeks.
Prime Minister Goh Kun instructed law-enforcement authorities yesterday to arrest striking truck drivers if they attempt to obstruct the transportation of cargo in Busan.



