Delivery drivers, couriers squeezed by fuel price surge

Cars line up at a gas station in Seoul's Nowon District, Thursday. Yonhap

Kim Moo-ho, a parcel delivery worker in his 30s, feels like the best way to save money is to not work at all.

“Last week’s spike in fuel prices changed everything. Among drivers doing long distance deliveries, people are joking that the only way to make money is to stop driving,” he said.

Unlike large logistics companies, many couriers and riders shoulder fuel expenses themselves while delivery fees remain largely unchanged.

“Fuel keeps going up but the delivery rates don’t. Every extra won just comes out of my pocket. Some drivers are thinking about taking time off until prices calm down.”

Some truck drivers say they will have to spend more than 1.6 million won ($1,080) extra per month due to the Middle East tensions.

As operating costs rise, drivers doing long-distance routes are feeling it the most, according to Park Sung-chang, a truck driver in his 50s.

“For many subcontracted drivers like me, higher oil prices translate directly into lower income. I have to refuel frequently, so it means I have to cut other costs,” he said.

Many truck drivers say diesel is no longer the cheaper fuel.

“Diesel prices topped 1,930 won per liter. They used to be lower than 1,600 won before the Middle East crisis broke out. Now they are even higher than gasoline,” Park said.

According to Korea National Oil Corp.’s Opinet system, the national average gasoline price topped 1,903 won per liter Monday, while diesel prices climbed to 1,932 won per liter Tuesday — both increases of more than 10 percent from a week earlier.

As of Thursday, gasoline prices averaged 1,900 won per liter nationwide, while diesel prices stood at 1,921 won per liter.

Some drivers began adjusting their work patterns. Online courier communities reported drivers avoiding low-margin routes, reducing delivery volumes or even taking leave during periods of unusually high fuel prices.

Food-delivery riders are facing similar pressures. While motorcycles generally consume less fuel than trucks and delivery vans, riders say long-distance calls can quickly erase profits.

Lee Dong-hyun, a food-delivery rider in his 20s, is one of them.

“Motorcycles are cheaper to run, but when you get a long-distance order, the fuel cost still hurts. You can’t refuse every job, so you just absorb the cost.”

Fuel reportedly normally accounts for around 20 or 30 percent of a delivery rider’s operating expenses. However, the recent spike could push that share to as high as 40 percent, further squeezing incomes in a sector already known for volatile earnings.