Eight-day strike may disrupt up to US$800M food trade in UK

 23 Aug 2022 --- UK food trade is facing disruptions after more than 1,900 members of the Unite union began an eight-day strike at the weekend at the nation’s busiest container port, Felixstowe. 

The port handles 40% of the UK’s container commerce, which is the equivalent of 4 million containers each year.

Analytics firm Russell Group estimates that as much as US$800 million of commerce could be impacted by the labor disruptions.

The port’s administration states it has set out contingencies in an attempt to sustain its operations, while warning that daily productivity will depend upon the number of employees that come to work.

Analytics firm Russell Group estimates that as much as US$800 million of commerce could be impacted by the labor disruptions.

Natalie Chapman, Logistics UK’s head of urban policy, remarks it is unlikely that the strike will have a noticeable impression on customers as many retailers’ freights operate through the Port of Dover.

“It is certainly far from ideal and it will cause some challenges but the supply chain is used to having to deal with challenges,” she comments.

“The longer things go on, the more serious the impacts could potentially be. If there were further strikes there would be concern.”

Adjusting course
As a result of the Felixstowe industrial motion, Maersk, the world’s second-largest container delivery group, has diverted three ships away from the port to different northern European locations.

The company states it is monitoring an extra 11 vessels that may very well be affected by the strikes.

While the walkout will likely exacerbate supply chain stresses, trade executives assert that the UK’s logistics trade has been resilient over the past two years and that these new issues are more likely to be manageable.

The UK has been showing recovery from Brexit and COVID-19 pandemic-related obstacles by expanding to non-EU international markets. According to the Food & Drink Federation, companies are taking advantage of the opportunities that new UK government trade deals bring – including a near three-fold increase of British salmon exports to China.

However, there is overarching concern that some of these nascent trade agreements – such as the UK’s latest deal with Australia – may impact food standards and worsen certain animal welfare issues, if implemented too quickly. 

By Benjamin Ferrer