Issue 401, May 15, 2003
A trucker strike at the port of Busan, South Korea, one of the world's largest container ports, is creating significant cargo delays and, in some cases, is forcing the re-routing of vessels from Busan and the Port of Gwangyang to ports in China and Japan. It is believed that the dispute has slowed container moves in South Korea to less than 20% of normal.

Talks between the government and the truckers collapsed on May 14, prompting the government to announce it would send in at least 260 military drivers, and dozens of tractors and trailers to ensure that containers continue to move within the port, according to published reports. Reports also indicate an increase in the number of trains serving the port. The government is attempting to mobilize 2,500 trucks of non-unionized shipping companies and is encouraging the use of private truck fleets if they are available.

The government has said it will try to mediate an end to the dispute, but added it will not hesitate to use police force to end the strike.

Government statistics showed that 8,250 20-foot equivalent unit (TEU) containers remain idled at Busan, resulting in an estimated $200 million in damage. Busan handled only 32 percent of its usual volume on May 13, slightly higher than the previous day. Gwangyang managed to move only 5 percent of its average daily volume.

Busan is the world's third largest container port, and is listed by the Bureau of Customs and Border Protection as the sixth largest foreign port in terms of cargo volume shipped to the United States. According to the Associated Press, Busan handles almost 8 million TEUs of container freight each year.

DHL Danzas Air & Ocean customers who have shipments scheduled to move in and out of the Port of Busan should remain in close contact with their local representatives for shipment updates and possible contingency plans.

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.