UK port strike set to increase global supply chain disruption

A planned strike at the UK port of Felixstowe later this month could affect trade worth $800m, according to analysis by Russell Group.

Almost 2,000 workers have proposed week-long strike action from 21 August over pay disputes.

Russell Group said clothing, with a trade value of $83m, and electronic components, worth $32m, would be most impacted by the strike.

“Many leading businesses are concerned about the impact that the strike will have on supply chains,” the data and analytics company said. “It is taking significantly more time for logistics and risk management experts to plan their strategies, which means they have had to throw extra resources to address shipping issues, for example, that previously were not a problem,” it added.

Felixstowe is used to feed UK exports to larger European ports including Rotterdam and Hamburg.

Russel Group said it expects the planned disruption at Felixstowe to divert trade to smaller ports in the UK and other international ports including Wilhelmshaven in Germany.

Suki Basi, managing director of Russell Group, said the strikes will add to existing supply chain disruption. “The disruption at Felixstowe spells more uncertainty for businesses, consumers and governments alike. Ports across the globe are facing congestion, due to a large backlog caused by the pandemic,” he said.

Adding: “These strikes could increase the backlog and in doing so, create even more delays, and the effects of this will only be registered in the coming weeks and months.”