Dear Network Partners,
At Freight Systems, we are committed to keeping our network partners informed about any developments that may affect our services. We would like to draw your attention to the upcoming nationwide dock worker strike planned by a few Unions effective 28th August 2024.
The All-India Port Workers’ Federation, representing several unions, has called for an indefinite nationwide strike at Indian ports from Aug. 28. The announcement follows three years of failed negotiations between employers, the government, and the unions over pay and pension reform. The strike is likely to affect port operations nationwide, including maritime transportation and cargo handling, with the effects likely to continue to be felt in the days following the end of the strike as authorities’ clear backlogs. Striking workers could stage protests near port facilities as part of their action localized ground transport disruptions are possible in the vicinity of port facilities.
This industrial action comes at a critical time for India’s economy. The country’s major ports, including Chennai, Cochin, and Mumbai, have a combined annual cargo handling capacity of 1.62 billion metric tons. As of now, India’s federal shipping ministry has not responded to requests for comment on the looming strike. The potential for widespread disruption is significant, given India’s crucial role in global trade. A prolonged strike could lead to delayed shipments, increased costs, and further strain on already stressed supply chains worldwide. Stakeholders in the global shipping industry will be closely monitoring developments as the strike deadline approaches.
Possible Impact (If Strike happens as planned)
- Such a strike would worsen congestion problems at major Asian ports like Shanghai, Singapore, Ningbo and Chattogram among others, as more shipments out of India get delayed.
- Work stoppage would impact the industry further of an already concerning capacity shakeup in May which has caused lot more stress in capacity & pricing.
- Delay in berthing of vessels, delay at anchorage. Delay in vessel operations resulting in global trade impact & unplanned pile up of vessels at ports causing sailing delays.
- Demurrage & Detention increase at Indian Ports both for import and export
- Omission of Ports in India, Offloading of boxes at nearest ports such as Singapore, Port Klang, Colombo & Jebel Ali
Our Recommendations
- 6-8 weeks of advance forecast by shippers for their shipment /booking
- Booking of space in advance for Sep/October sailing to support the peak period & Space over Rate prioritization depending on urgency & consignee/shipper stocking requirements
- We propose our customers to explore alternative modes of transport for their critical production /supply requirements
- Production planning buffer of 1-2 weeks for Sep/Oct (the existing service delays already has brought in a week delay in schedule, the addition disruption will continue to add 1-2 weeks more of a delay in sailings for both import and export
We will monitor the situation closely and keep you informed of any further developments. If you need any further assistance, please reach out to our customer service or sales team at info@freightsystems.com.
We appreciate your ongoing support and understanding as we navigate these challenges.
Regards
Team Freight Systems
