Trade in the UK may be disrupted in the coming weeks after more than 1,900 members of the Unite union began an eight-day strike over the weekend at the nation’s busiest container port, Felixstowe.
The port handles 40 percent of the UK’s container commerce, which is the equivalent of 4 million containers each year.Analytics firm Russell Group estimates that as much as 680 million pounds of commerce could be impacted by the labor disruptions.
The port’s administration states it has set out contingencies in an attempt to sustain its operations, while warning that daily productivity will depend upon the number of employees that come to work.
Natalie Chapman, Logistics UK’s head of urban policy, remarks it is unlikely that the strike will have a noticeable impression on customers as many retailers’ freights operate through the Port of Dover.
“It is certainly far from ideal and it will cause some challenges but the supply chain is used to having to deal with challenges,” she comments.
“The longer things go on, the more serious the impacts could potentially be. If there were further strikes there would be concern.”
The union has however warned the stoppage at the port, which handles almost half the container freight entering the country, will have a significant impact on UK supply chains and the logistics and haulage sectors.
But a port source downplayed the warning, telling the PA news agency the strikes will be an "inconvenience not a catastrophe".
"Disruption is the new normal. The supply chain has moved from 'just in time to just in case'," he added.
Unite general secretary Sharon Graham said Felixstowe docks is "enormously profitable".
"The latest figures show that in 2020 it made £61m in profits," she said. "Its parent company, CK Hutchison Holding Ltd, is so wealthy that, in the same year, it handed out £99m to its shareholders.
"So they can give Felixstowe workers a decent pay raise," Sky News quoted Graham as saying.
The Port of Felixstowe said it was "disappointed" Unite had not "come to the table for constructive discussions to find a resolution".
"We recognise these are difficult times but... we believe that the company's offer, worth over 8 percent on average... is fair," it said in a statement.
"The port regrets the impact this action will have on UK supply chains... there will be no winners from this unnecessary industrial action," it added.
Brian McLister