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HMM is facing its first strike, which may have an impact on the global supply chain

Time:2021-08-27 Publisher:Kevin Num:4023

This year, there have been strikes in many countries, and many port workers are dissatisfied with the salary structure. Recently, workers in another country are going to strike.

 

According to relevant media reports, on the 23rd, all employees of HMM company in South Korea conducted a round of labor dispute voting. The results will be announced today.

 

Just later on the 23rd, the vote had the final result, and nearly 90% of voters supported the strike.

 

However, according to the relevant laws of South Korea, seafarers participating in international shipping cannot strike. 

Therefore, these supporters can only choose to resign collectively. They intend to submit a letter of resignation to the management this week.

 

HMM believes that the current rising shipping freight is good for many shipping companies. A large number of shipping companies expand the recruitment scale. If this problem is not solved, it will lead to serious personnel loss.

 

HMM is the only large shipping company in Korea. As a member of the alliance, HMM plays an important role in the global shipping supply chain.

 

At present, the global shipping capacity is insufficient and the shipping space is in short supply. If HMM falls into strike, it will be difficult for most exporters to export their goods to other countries.

 

This sudden strike is a heavy blow to the global shortage of maritime transport capacity. This may deepen the confusion of shipping schedule. It is a huge test for the global supply chain.

 

The impact of this incident on China is not small. The most obvious thing is that it will increase the unloading fee in China. 

According to the analysis of domestic logistics companies, the strike may lead to a series of chain problems.

 

This strike is the first strike of HMM company, mainly due to salary disputes. Before 2019, due to the depression of the shipping market, the wages of employees were very low.

 

However, in the last two years, the shipping market has warmed up and HMM's revenue has begun to increase. Coupled with the recent surge in freight rates, its profit margin has reached nearly 50%.

 

In this context, seafarers hope to increase their wages to make up for the previous low long-term wage level. However, HMM only made partial concessions, which was unacceptable to the trade union.

 

According to South Korean media reports, HMM shipping union said to suspend the strike plan and will hold a new round of negotiations with HMM management next week.

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