Supply networks are already feeling the effects of pandemic disruptions, and a strike by dockworkers at the most significant port in the UK threatens to worsen the situation.
There are concerns that the eight-day strike by some 2,000 workers at the port, which is the largest in the nation for containerized imports and exports, could give yet another significant blow to an economy already struggling with inflation issues and a potential recession.
The port, which is the main hub for the country’s trade with Asia and handles approximately a third of its total container traffic, has made progress in the past two years in overcoming dwell time problems brought on by the pandemic. The strike, however, would jeopardize that progress because it may take up to 24 days to clear the backlog brought on by the labor conflict. The strike, according to data and analytics firm Russell Group, may cause $800 million in trade delays.
Delays in imported cargo to the UK could result from the disturbance spreading to the rest of the nation’s economy. As they get ready for the hectic holiday shopping season, merchants. a data and analytics company named Russell Group claimed.
“We shall of course do everything we can to support the UK supply chain, although it should be understood that we are currently delivering record volumes and there is minimal spare capacity,” the second-largest port in the country is located in Southampton, according to DP World.
Despite appeals from other organizations to resolve the labor conflict, the workers appear prepared to strike after the union most recently rejected a salary rise offer from the port of 8%.