Industrial actions at major global ports are emerging as significant threats to Oceania’s ocean supply chain, with potential spillovers into air freight as businesses scramble to maintain delivery schedules. The strikes in India, Australia, and the USA could lead to substantial disruptions, including cargo congestion, delays, and increased shipping costs.
Key Takeaways:
- India: Indefinite dock workers’ strike starting August 28th, with potential delays exacerbated by a truckers’ strike from August 20th.
- Australia: A 48-hour pilot strike at Fremantle Port is expected to cause delays.
- USA: A significant dock workers’ strike is possible from October 1st, with major supply chain disruptions anticipated.
Overview:
India: Starting August 28th, dock workers at India’s 12 major ports are set to strike indefinitely due to an unresolved 2021 pay agreement. This action is likely to cause significant disruptions to global supply chains, leading to cargo congestion at alternate ports, port blanking, surcharges, and increased shipping costs. Additionally, a potential truckers’ strike from August 20th may exacerbate delays.
Australia: On August 18th, port pilots at Fremantle commenced a 48-hour strike, demanding a $20,000 pay increase. The strike could result in anything from minor delays to a complete port shutdown, significantly affecting supply chains and raising costs for businesses.
USA: A potential strike involving 85,000 dock workers at the East and Gulf Ports of the USA is looming, set to begin on October 1st. A one-day strike could create a backlog of 4-6 days, while a week-long strike might take up to six weeks to recover from, potentially impacting the supply chain into 2025.
If you would like to discuss potential workarounds to these disruptions, get in touch with us to work alternatives together.
