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, raising concerns about logistics challenges and supply chain disruptions among shippers.
Based on the latest updates from reliable sources, the Workers’ Federation rejected the revised wage structure proposal put forward by the Indian Ports Association (IPA), prompting them to proceed with the strike. IPA will meet with the Workers' Federation representatives on 27 August in New Delhi for a critical conciliatory meeting. The outcome of this meeting is expected to shape the future course of these port labor disputes.
The India West Coasts:
- Mumbai/Nhava Sheva: The Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai has also received a strike notice. However, significant upheaval is unlikely as private operators manage much of the port's operations.
- Mundra: A major gateway for containerized freight requiring inland rail haulage, Mundra is expected to remain unaffected as it is entirely privately owned and operated. However, it may face rapid congestion due to diverted export-bound containers.
- Mangalore: The Port Workers Union has not yet served a strike notice, and port authorities anticipate minimal impact.
- Kandla: Various trade unions have issued strike notices here, with dry bulk vessels at general cargo berths expected to be affected first.
- Mormugao (Goa) and Cochin: Strike notices include these ports, and exporters should anticipate delays.
The India East Coasts:
- Tuticorin: Strike notices have already been served, but the port authorities have yet to respond. A strike would likely halt vessel operations and cargo movements entirely.
- Chennai: The Port Workers Union has served notice to the port management. Discussions mediated by the Labour Commissioner may lead to partial operations, but dry bulk and containerized freight will likely see disruptions.
- Ennore: With most berths operated by private parties on a BOT basis, significant impacts are unlikely.
- Vizag: Strike notices here will halt cargo discharge and loading operations entirely.
- Paradip: Strike notices are pending, but slowdowns are expected if the strike is formalized.
- Kolkata: The ongoing social unrest in Dhaka, Bangladesh, has already caused a surge of inventory through Kolkata. If strike actions proceed, delays, congestion, and extended turnaround times for dry bulk vessels could ensue.
- Haldia: As with other ports, strike notices are pending. However, the impact may be minimal due to the involvement of private contractors in bulk cargo 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 such as Hazira, Dahej, Mundra, GMB Ports, Karaikal, Kattupalli, Krishnapatnam, Gangavaram, Kakinada, Dhamra, and others are unlikely to be affected since private operators like Adani and JSW manage these ports.
Potential Game-Changers:
- Mooring Crews: If mooring crews decide to join the strike, vessel berthing and unberthing will be affected, potentially causing carriers to bypass Indian ports for EMEA destinations. This could result in significant rolled containers.
- Commodities: Crude, CPP, chemicals, edible oil, LPG, ammonia, and LNG are unlikely to see immediate disruption unless mooring operations are affected.
- Administrative Staff: Key administrative and pilot staff are exempt from the strike, ensuring limited functionality.
Adapting to Logistics Challenges and Supply Chain Disruptions
As the strike unfolds, its impact will ripple across global supply chains. Adapting quickly will be essential for shippers and forwarders to mitigate the effects of these port labor disputes.
Impact on Rates:
Currently, the Platts S&P Global index is trending downward for rates from hotspots impacted by labor negotiations, particularly the Indian Sub-Continent to the US East Coast.
This update synthesizes unique insights from Silq’s boots-on-the-ground inspection teams across APAC and insights from our 184 global Market Maker Partners and leading industrial publications.
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