The losses incurred by poor containers from overseas were much higher than those redistributed for domestic use. (Yonhap)
BUSAN, May 3 (Korea Bizwire) — Shipping companies using the Busan Port are handing over containers in poor condition to truck drivers for cleaning or repair without proper payment, incurring losses of billions of won each year.
Last November, the Busan Port Authority conducted examinations of 9,278 empty containers withdrawn from three terminals at Busan Port, analyzing the time and social cost that truck drivers spent on containers in poor condition.
Port officials said that up to 46 percent of the examined containers were unclean, severely rusted, dent, or had holes.
Truck drivers either cleaned or repaired the containers themselves before taking them out or returned them to repair and cleaning shops at the terminal to take a different container instead.
This whole process of cleaning, repairing, and withdrawing containers in a poor state required twice the amount of time spent on withdrawing containers in better condition.
Park Yong-an, a researcher at the Korea Maritime Institute, estimated that the social cost of the drivers having to do extra work of cleaning, repairing, and returning the containers could be as high as 4.69 billion won (US$4 million) each year only at the Busan Port.
This comes as a severe loss to truck drivers, because the shipping companies do not pay compensation for any additional work put into the containers.
The losses incurred by poor containers from overseas were much higher than those redistributed for domestic use.
The losses are expected to reach as much as 7 billion won if Busan’s North Port, which wasn’t a part of the examination, is taken into account.
“The shipping companies ask the shipper to pay for the cleaning charges, without paying us who do the actual cleaning work,” said the truck drivers.
The shipping companies are known to charge 25,000 won to clean a 20-foot container, and 40,000 won for a 40-foot container.
“The Busan Port Authority and relevant government agencies should come up with fundamental measures to address the malpractices of shipping companies,” said truck drivers.
Lina Jang (linajang@koreabizwire.com)
