Truckers yesterday reached an agreement with shipping firms to end their week-long strike. The Transport Ministry said drivers and shippers agreed to raise long-distance haulage rates by 19 percent and introduce legal standard shipping rates next year.

We really appreciate the container consignors for understanding the hardship of truckers stemming from the oil price hike and trying to settle the negotiation, the ministry said in a statement.

Government officials said most of the cargo truckers would return to work starting today, but some drivers in Busan still continue to refuse work because of conflicts with the regions steel makers.

Over 13,000 truckers went on strike on Friday, demanding a raise in haulage rates to offset the skyrocketing fuel prices.

The strike was much bigger than the 2003 walkout in which about 5,000 truckers took part. Many cargo truckers have been suffering losses in recent months due to a surge in diesel prices.

Those on strike mainly were self-employed truckers who have to bear the brunt of the fuel cost burden. Truckers have been demanding not only a pay increase but a reform of the multiplayer brokerage system, which they insisted has been denting their income.

The government has been trying to soothe the growing complaints by offering various incentives to strikers. The Transport Ministry on Tuesday promised to spend 100 billion won ($98 million) to buy back trucking licenses and trucks to ease the supply glut of commercial trucks in the market. It also pledged to revamp the multiplayer brokerage system, which striking truckers say has been substantially cutting into their income.

The state aid scheme includes subsidies to help drivers convert their trucks into gas-powered ones, which cost less to fuel than diesel-powered vehicles.

The government also pressured shippers to make more concessions to settle the dispute early. The proactive move by bureaucrats helped truckers to come back to the wheel, observers said.

As the strike nearly came to an end, local manufacturers that have been substantially disrupted by the clogged transport are expected to normalize their operations shortly. In contrast to the progress regarding the truckers strike, the government has yet to end the walkout by dump truck drivers and operators of construction equipment.

Nearly 600 construction sites have been hit by a shortage of materials and more than 60 projects have been suspended.