Issue 416, August 27, 2003

The week-long strike by 30,000 South Korean truck drivers is showing signs of losing momentum, according to government officials. In addition, the government reports that containerized cargo flows at the country's two largest ports are beginning to return to near-normal activity.

Published reports quote government officials as saying that more than 75% of cement truck drivers and 34% of container cargo drivers have quit their walkout and have returned to work. Container cargo flows at the Port of Busan increased to 70% of normal from 54% of normal on the prior day, government officials report. The second-largest port, the Port of Gwangyang, has recovered to operate at 84% of normal activity, the government said.

Trucking companies have threatened to cancel transport contracts, and the government plans to cut fuel subsidies for strikers unless the dispute is brought to a swift conclusion.

At this time, government and union officials are at odds over the reports of strikers leaving the picket lines and returning to work. As a result, the duration of the strike remains unclear. As we have reported, steamship lines do not plan to change their sailing schedules, and they have not implemented any contingency plans.

We will update you as events warrant. In the meantime, do not hesitate to contact your local DHL Danzas Air & Ocean representative with any questions or comments.