I Became Park Jeong-ui’s Nephew - Chapter 351



Only Noblemtl

He became Park Jeong-ui’s nephew. – (351)

“Here’s the news. The Port Authority of New York has admitted that it is virtually impossible to reach an agreement with labor this year. Last month, the Port Authority and labor agreed to refrain from strikes that would disrupt port operations, but labor ignored the agreement and went ahead with the strike. As a result, the average monthly docking time in New York has increased from six to 12 days, and prices in New York have skyrocketed.”

This is New York, and unpleasant news has struck the world.

The world is now in a structure where it cannot return to an isolated economy.

This year, the U.S.’s export and import ratio against its GNI was 32.4%, Japan’s was 37.5%, and France’s was a whopping 46.1%.

The bigger problem is that the world economy is moving toward concentration rather than diversification.

After World War II, the United States viewed the Soviet Union as a threat to American hegemony and formed alliances with European and Asian countries.

In the process, the United States established a trade system that isolated the Soviet Union.

By isolating the Soviet Union, they achieved the feat of controlling world trade routes. So how did world trade routes change after the collapse of the Soviet Union?

Should we still go back to the US?

The United States, whose manufacturing industry has virtually collapsed, is in a position where it must import from overseas. Last year, the United States imported 27% of its total volume from Korea, and 25 major Asian countries also showed their dependence on Korea.

The United States is wary of this trend and is promoting diversification of imports and supply, but it cannot go as planned.

“According to a recent study by the Peterson Institute for International Economics, a U.S. think tank, trade patterns are becoming more concentrated in Korea. Daehan Shipping is further reducing costs and accelerating production based on its overwhelming production population. As a result, small and medium-sized shipping companies that can compete with Daehan Shipping are virtually on the verge of extinction.”

Daehan Transportation had already been promoting container enlargement since 1985, which was like a death sentence for small and medium-sized shipping companies.

Marine freight rates have been low-wage since the old days.

However, since a global company called Daehan Transportation is pushing for larger containers and driving down prices, small and medium-sized shipping companies cannot survive.

This was a fatal blow to European countries such as Denmark and Sweden that made a living from shipping. So, would European countries have controlled logistics coming from Korea and pressured Korea by joining hands with the United States?

The result was quite the opposite.

“The volume of Korean raw materials and parts exported to Southeast Asia has increased, and finished products made in Southeast Asia are being exported to the West. As a result, Korea’s trade dependency continues to increase.”

In fact, the world’s export and import diversification policy is evaluated as having failed.

Export diversification has decreased by 31% compared to 10 years ago, import concentration has increased by 28%, and it has been revealed that 30% of the U.S. economy is dependent on Korea.

The U.S. import diversification index is only 0.7, and Asian countries that depend on Korea are maintaining a score of 1, but the U.S. is in an even more serious situation.

Despite this reality, there are politicians who cannot come to their senses, and voices inciting a port strike are increasing.

“Ports and shipping have long suffered from low wages. This is the result of excessive price gouging by Korea Transport, and workers must also speak out.”

This paralyzed the New York harbor.

Berthing times at New York Harbor have skyrocketed from six to 12 days, and the results are obvious.

The US government, taken aback by the port congestion and the resulting rise in logistics costs, attempted to end the strike by demanding a 20% wage increase and bonus payments.

But four of the 12 unions are continuing their strike over the lack of paid leave provisions, and the aftermath has paralyzed the eastern half of the United States.

Even though the U.S. economy has recently shifted to the West (California-Texas), more than half of Americans still live in the East.

The flow of goods there has been blocked, and as the strike drags on, some container ships have been stuck at sea for more than 20 days.

The company must bear all the losses.

Daehan Transportation has withdrawn all container ships bound for New York.

If left unattended, the bottleneck will only accelerate, and it has been calculated that there are in fact over 60,000 containers stuck in New York.

30,000 of them were withdrawn, and the bottleneck disappeared, but this is not good.

With logistics volumes cut in half, it’s only natural that prices will soar. So will they bring in supplies from the inland?

The United States is a country that does not have such infrastructure, and cannot transport large quantities of goods by rail, so it must unconditionally mobilize large trucks.

Then who will mobilize it?

That system is well established in the California-Texas area where Korean shipping is rooted, but not at all in the East.

We depend on supplies coming from the coast, and now that’s gone, all we’re left with is rising prices and massive economic damage.

As a result, the western United States is enjoying windfall profits, while the eastern economy is paralyzed, making it even more dependent on the west.

Coincidentally, this place is under the influence of Daehan Transportation. Although the East suffered great losses, the West played its part and Daehan Transportation was able to recover its losses.

American companies are also leaving the East and moving West,

How can you do business in peace in the East where you can’t even control strikes?

In this way, America’s logistics volume is concentrated in the West, where a smart port system has been operated since 1987 with the advice of a Dutch company.

Since most of the port entry procedures are automated, there is less chance of bottlenecks occurring, and over 30,000 containers were processed in just three months.

The American West grew even faster thanks to the East’s blunders, and this incident resulted in Daehan Transportation’s dominance of American logistics.

This trend has existed in the past, but it is now becoming more severe.

The United States, which had been a pillar of the world along with Korea, collapsed like this.

***

“Your Majesty, the value of Daehan Transportation increased by 6% in this quarter alone.”

“Is that true?”

“Yes, the ocean freight index also rose by 96 points.”

“So it’s over 3,000 points?”

“Yes, 1300 points higher than other competitors.”

“Then it’s over. We ate everything.”

This is Geumneung,

I met face to face with the officials of Daehan Transportation.

No matter how much the world pursues diversification, people are attracted to cheap, high-quality products. Korea, which has the largest production population and manufacturing density in the world, is bound to gain an advantage in the competition.

Even the US relies on Korea for 30% of its logistics, so how can other countries survive?

The 64 countries that have joined the EAEC have already designated Korea as a major trading partner, and logistics in the Asia-Pacific region are moving centered around Korea.

As a result, the container freight index has surpassed 3,000 points, and while the world average is 1,700 points, Korea has achieved performance close to double that.

The structure is such that the game is virtually unplayable, and the route prices are as different as heaven and earth.

Thankfully, this is the good fortune that America has created. If thoughtless politicians had not incited union strikes, America would have had balanced development between the East and the West.

But blocking the eastern coast,

How is this any different from cutting off one’s own arm?

With logistics volumes down 50%, companies are moving west, putting Daehan Transportation in complete control of the U.S. economy.

So will the US government play the card of raising tariffs? As logistics are shifted to the West, trade volume in this area increased by $9 billion compared to the previous quarter.

If we respond with tariff increases, will the West stay still?

When the government imposes regulations, it only leads to a backlash, and in reality, public opinion in the western United States is very skeptical of the federal government’s regulatory policies.

“You’ve already ruined the East, now you’re trying to ruin the West too?!!”

“Just try to regulate it!! Then we will become independent!!”

In fact, voices for independence are being heard in the West.

Currently, the Democratic Party and labor unions dominate public opinion in the eastern United States, as evidenced by the fact that 12 port unions have chosen to strike under the influence of politicians.

In short, the American economy was ruined by agitators.

In contrast, California and Texas are right-wing strongholds.

They maintain a position that they will maintain their economy based on trade with Korea, and naturally, they will strictly control any collective actions that may cause labor strikes or social unrest.

If the federal government interferes, it seems like they will immediately start a movement for independence. Is the United States, which was once divided over the issue of black slavery, now divided over economic issues?

Political conflict is also intensifying.

“If this continues, everything in Korea will be swallowed up!! We need to pursue diversification even now!!”

“What do you know to be talking about!! Indonesia also receives raw materials from Korea and makes products?!! Don’t be mistaken!!”

Indonesia is now the only place that can replace the hope of American manufacturing and the labor market of South Korea, with a population of 600 million.

The problem is that even Indonesia has jumped into Korea’s arms, and what can we do when we can’t compete on price?

Ultimately, even if the United States sets up a manufacturing plant in Indonesia, the reality that it is under Korea’s influence will not change.

California and Texas know that, and the moment they snort at the voices pushing for decoupling with Korea, the U.S. economy will fall into the abyss.

Just looking at the East, didn’t they block the port and cause chaos?

But how can we promote diversification of imports and exports? It is impossible from the start.

Of the 2,500 key imported items, 70% of 280 items are imported from Korea, and 100% of 76 items are imported from Korea.

The telecommunications and network sectors account for 92%, and they are inseparable.

Diversification itself is nonsense, this world simply operates under a bipolar system between Korea and the US. If Korea produces, the US consumes, and since that consumption has been blocked, the US is now no different from a patient with one arm paralyzed.

Texas – Will California follow suit?

Public opinion in the western region was that we should live rather than die together, and as the situation became more serious, the U.S. government drew its sword.

“Stop the strike now, I warn you.”

The U.S. government counterattacked by offering paid vacations to labor unions.

Of course, the union of 25,000 members continued to resist, believing in their numbers.

The result was a major clash, a physical clash between police and unions four months after the strike began.

A major incident occurred in which 44 people died and 1,187 were injured. The union, which was in a state of panic, took control of the port facilities and even set them on fire.

The irresponsible resistance of “you die and I die” and the extreme resistance of the union also drew a backlash from American society.

Is Daehan Transportation, which controls 30% of American logistics, evil? Or are they the ones who paralyzed the eastern region the devil?

What was clear was that there had been no problems in the East until the union went on strike, and it was obvious who American public opinion would blame.

“Suppress it quickly!!”

“If we delay any longer, the eastern economy will collapse!!”

As public opinion formed, the U.S. federal government quickly launched a suppression operation.

Although some politicians led protests at the strike site, they were all arrested on charges of anti-state activities, and the broadcasting team that went to the site captured the suppression operations taking place in various places on camera.

The United States also failed in its export and import diversification policy.

In this way, Korea has become firmly established as the center of global logistics.