Ports face more disruption from strike action as cost-of-living crisis bites

In the UK, cargo handling operations at Felixstowe also remains disrupted, due to the backlog created by 8-day walkouts by dock labour in both late August and late September / early October. Strike action at Liverpool is further adding to shipper woes. As a result disruption is expected to continue through 4Q22.

Source: Drewry’s Ports and Terminals Insight

Drewry’s view is that rising inflation increases the likelihood of strike action in other markets as dock labour push for higher wages to address the increasing cost of living. Disruption on the US West Coast remains a risk, for instance, while labour contract negotiations remain ongoing between the International Longshore and Warehouse Union (ILWU) and employer body the Pacific Maritime Association (PMA).

Whether terminal operators will be able to pass higher wage costs back to customers at the end of the year remains to be seen

The Ports and Terminal Insight is a quarterly report (PDF) covering the latest developments in the container ports and terminals market, accompanied by a new monthly report (PDF) providing regular port congestion and performance monitoring (powered by Drewry AIS analytics). It looks behind the data and topical issues to answer both the ‘cause’ and ‘effect’ questions that matter most to senior industry stakeholders.

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