The
Cargo Truckers' Solidarity union is planning an indefinite strike from 24
November, which will likely cause another supply chain disruption in South
Korea. It will first affect transportation in the Pohang area, Kallanish learns.
Posco's Pohang plant is already recovering from the impact of
recent flooding, and the strike will further delay material and equipment
shipments to the mill. Posco said on Tuesday it hopes to work with
the union to access the vehicles needed to resume operations.
Hyundai Steel's Pohang plant is also concerned that the strike
could disrupt logistics. It has shipped some of the emergency supplies needed
by customers ahead of schedule. A Hyundai Steel source says: "We are
reducing inventory as much as possible through pre-shipment."
If the strike is prolonged, it will have a negative impact on
the steel industry. Since Posco's Pohang plant has not fully resumed
operations, however, the impact on its shipments may be limited.
In June, an eight-day strike by South Korean truckers delayed
cargo shipments of products ranging from autos to semiconductors in South
Korea, costing more than $1.2 billion in lost output and unmet
deliveries.