Ahead of the Christmas season, a Nationwide Port Strike called by the All-India Port Workers’ Federation, representing six major union workers federations, is scheduled to commence on 28th August 2024 in India, causing uncertainty among shippers.
Based on the latest updates from reliable sources, the Workers Federation rejected the revised proposal for wage structure for workers put forward by the Indian Ports Association (IPA), leading them to proceed with the Strike. IPA will meet with the representatives of the Workers' Federation on 27 August at the nation's capital, New Delhi. The outcome of this crucial conciliatory meeting is expected to decide the future course of this strike.
The India West Coasts:
- Mumbai/Nhava Sheva: The Jawaharlal Nehru Port Trust (JNPT) at NaviMumbai has also seen the strike notice being served. However, it is unlikelyto see a lot of upheaval as private operators are involved.
- Mundra: A major container gateway for containerized freight that requireinland haulage using rail. This port is expected to be unaffected as it is entirely privately owned and operated. This port is likely going to get quickly congested dealing with a flood of export bound containers getting diverted.
- Mangalore: The Port Workers Union have yet to serve a strike notice. According to updates from the port authorities, there will be little to no impact.
- Kandla: Various trade unions have now issued a strike notice to the port authorities at the Kandla port. Dry bulk vessels working at General Cargo Berths are speculated to be the first to be affected.
- Mormugao(Goa) and Cochin: The strike notice at this time includes Mormugao(Goa) and Kochi ports, as a result, exporters should anticipate delays.
The India East Coasts:
- Tuticorin: The Port Unions have already served a Strike Notice. However, the port authorities have yet to respond. If the strike commences, it will likely ground vessel operations and cargo movements.
- Chennai: The Port Workers Union in Chennai has served the strike notice to the Port Management. The Labour Commissioner is likely to call for a discussion to mediate and negotiate partial operations. However, it is widely expected for the strike to commence as scheduled, impacting dry bulk movements and containerized freight.
- Ennore: The port is unlikely to be affected as private parties operate most of the berths on a BOT basis for bulk cargo.
- Vizag: Since the Port Workers Union has served the strike notice, cargo discharge, and loading operations will be halted completely.
- Paradip: The port authorities are yet to receive the strike notice. However, once submitted, this strike is expected to slow down operations
The Indian East Coasts (continued):
- Kolkata: Given the social unrest in Dhaka, Bangladesh, there has alreadybeen a flood of inventory attempting to ship out of Kolkata can be catastrophic. This could lead to cargo evacuation from berths to storage plots, leading to delays, congestion, and extended turnaround time for dry bulk vessels.
- Haldia: The port authorities have yet to receive the strike notice. Majority of berths at the Haldia Port are engaged by private contractors or stevedores handling bulk cargo movement, as a result the impact is expected to be minimal
Other Private Indian Ports/Terminals:
- Ports of Hazira, Dahej, Mundra, GMB Ports, Karaikal, Kattupali,Krishnpatnam, Gangavaram, Kakinada, Dhamra, etc., will not be affected, as these ports are privately operated players like Adani and JSW
Specific call-outs that can dramatically change the outlook:
- Mooring Crews across all ports have yet to take a stand on supporting or joining the strike. Should they decide to support, mooring operations such as vessel berthing/unberthing will be affected leading to carriers skipping Indian ports and head straight to EMEA and beyond. A significant amount of rolled containers is widely expected as a consequence.
- Commodities like crude, CPP, chemicals, edible oil, LPG, ammonia, LNG, etc., will not be affected initially unless mooring operations are affected during later stages.
- The administrative staff at these major ports will not join the strike, and the pilots will also be exempted.
As the strikes continue to unfold, their impact on cargo operations will be felt across supply chains. Adapting to these disruptions will be crucial for shippers and forwarders as they navigate an increasingly complex landscape.
Impact on Rates:
At this time, the Platts, S&P Global index continues to trend downwards on rates from the two hotspots that are set to be impacted as a result on labor negotiations - The Indian Sub-Continent to the US East Coast.
This update is brought to you by synthesizing the unique insights Silq generates by leveraging our unique presence with boots on the ground inspections teams across APAC + 184 strong Silq Market Maker Partners across the globe and major industrial publications.
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