Cargo truck driver strike in Korea DSV update - Impact on port operations Current Status • A Truck Union strike was rolled out mid night last Monday (Jun 6th) with concerns over soaring fuel price and demand for minimum pay guarantee. The unionized cargo truck drivers on Tuesday (Jun 14th) have decided to end their walkout that caused nationwide logistic disruptions and delays after reaching an agreement with the government over a freight rate system. • Primarily the impact applies for OCEAN shipments. No major impact to AIR shipments, but we are closely monitoring AIR shipment delivery. • We have seen severe operation disruptions at all key ports and Euiwang Depot (ICD) since no container in and out allowed with the union blocking the main gateway. • The Truck Union mentioned that they would do their best to normalize local transportation, but we expect that it will take 1 or 2 weeks to be back to normal. Outlook and mitigation plan • DSV KR suggest shippers to consider other options than ocean freight for the time being, especially from adjacent countries (JP, CN), in view of the strike and consequent challenges on container in/out. If there are any urgent ocean shipments in the coming 1-2 weeks, we recommend switching to air freight for small volume of cargo. • DSV team is working with alternative options such as seeking resources from truckers to arrange delivery for high priority shipments. 2 | DSV – Air & Sea Market update June 2022
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