Industrial action at Felixstowe could cause disruptions to the supply chain in the UK.
An eight-day strike began at the port, which handles 48 per cent of the UK’s container trade, on Sunday, August 21. More than 1,900 workers, including machine operators and crane drivers, walked out of their job in what is the first strike at Felixstowe port since 1989.
The industrial action is expected to have a significant knock-on effect on the logistics and haulage sectors and could lead to serious issues in the supply chain, including shortages and delays. It is the latest in a number of strikes by employees in the transport industry as a result of disputes over pay and job security.
Whereas Dover handles a lot of perishable goods like groceries and food, Felixstowe is typically used for higher value items like sofas and fridge-freezers. This means the industrial action could cause issues for furniture retailers with customers having to wait longer for their orders to be filled.
The striking workers at Felixstowe are all members of the Unite trade union, which wants its members to be given a pay rise to reflect the rising cost of living.
Sharon Graham, general secretary of Unite, said the port was “enormously profitable” so it was only fair that workers were given a decent pay rise.
She said: “The latest figures show that in 2020 it made £61 million in profits. Its parent company, CK Hutchison Holding Ltd, is so wealthy that, in the same year, it handed out £99 million to its shareholders.”
A spokesman from the Port of Felixstowe said it was disappointed that a resolution had not been found and that Unite members had decided to take industrial action.
A company statement said: “The port regrets the impact this action will have on UK supply chains. There will be no winners from this unnecessary industrial action.”
More industrial action likely if agreement not reached
Although the initial strike is only due to last for eight days, Unite has warned that further industrial action is likely if the demands over pay are not met.
There have already been significant disruptions to the supply chain in the UK as a result of Brexit and the Covid-19 pandemic. Felixstowe plays a crucial part in receiving long distance shipments of bulky items like furniture and white goods from China and other parts of Asia.
Businesses which don’t have their own warehousing and distribution facilities are more vulnerable to the impact of supply chain problems as they are relying on stock being delivered to the UK as and when they need it. Using a third party logistics (3PL) service like AP+ can help companies protect themselves from these kinds of disruptions as they can make sure they have a good supply of stock in the UK ready to meet customer demand.
AP+ offers storage and distribution services with a team of staff who will pick and pack stock and fulfil orders, sending them directly out to the end customer using the most cost-effective carrier available at the time.
To find out more about how our services can help your business, contact a member of the AP+ team today.
