Becton Dickinson and Archer Daniels Midland also export their products to this port. Recent US Customs data show Levi’s and Black & Decker export to this port, along with Mallory Transportation which moves motorcycles, JF Hillebrand transporting Sonoma Wine, Ocean Spray, Nutrition and Biosciences which merged with IFF, and Brown Forman, the company that owns Jack Daniels. The timing of the arrival of goods for the holiday is also of concern. The strike will also impact US companies and industries that export to the UK According to detailed customs data analyzed by MDS Transmodal, a total of $66.7 million in US exports were processed in the Port of Felixstowe for the month of August 2021. This goes beyond a ‘logistics problem’, as the increase in cost can be felt by the final consumers.” The impact on US exports The re-routing, however, would not eliminate the risk of longer delivery times and higher costs, which can only worsen the UK economy already affected by high inflation. “Assuming that other Southern ports in the UK (Southampton and London Gateway) or continental ports have spare capacity to handle additional cargo, shipping lines could divert their ships. “With retailers getting ready for the approaching festivities (Halloween and Christmas), the strike at the port of Felixstowe has the potential to disrupt the UK supply chain at a crucial time,” said Teodoro. In a statement Maersk said: “We expect the strike action to have a significant impact to the vessel line-up and are working along with vessel partners to mitigate risk and disruption as much as possible.”Īntonella Teodoro, senior consultant at MDS Transmodal, told CNBC this is going to increase inflation on products being moved along this trade route. Maersk, the second largest ocean carrier in the world, has omitted three vessel calls during the strike. Over 48% of the UK’s container trade is processed at the Port of Felixstowe. Some notable names listed were Amazon, General Mills, Loreal, GSK, Bacardi, Kellogg ,Mars Foods, Diageo, the company which owns Guinness, and Suntory, which owns Jim Beam. “You are looking at the second half of November at the earliest to have products arrive at stores to be put on store shelves.”ĬNBC reviewed the bills of lading and companies that depend on products leaving that port. “It takes on average a week for containers to clear out of the port, and then a week to schedule a pickup by truck,” said one logistics manager. This could impact the arrival of products slated to be on store shelves for the holidays. Ocean carrier lines are already facing congestion and container mess in the other ports.” “However, there are few alternatives to move containers to other ports. “First talks with shipping lines have started to deviate containers,” said Andreas Braun, Europe, Middle East, and Africa Ocean product director at Crane Worldwide Logistics. The CNBC Europe Supply Chain Heat map shows Felixstowe is now officially congested across the board.Ĭrane Worldwide Logistics told CNBC it will take around two months for this congestion to be cleared out. It’s clear both companies have prioritized delivering multimillion-pound profits and dividends rather than paying their workers a decent wage,” she said. “They can give Felixstowe workers a decent share raise. Sharon Graham, general secretary of Unite, recently said CK Hutchison Holding Ltd prioritized shareholder profits over worker welfare. In the first half of 2022, the company’s profits declined due to lower volumes of export/import cargoes handled in the Hong Kong port. The company recorded a 75% increase in profits for 2021. Unite said members rejected the average 8% share offer from the Felixstowe Dock and Railway Company because the wage offered was lower than the rate of inflation.ĬK Hutchison Holding Ltd, which owns Port of Felixstowe, said in a statement on the port’s website it was “disappointed” the walkout had gone ahead and called its offer of salary increases of on average 8% “fair”. The UK’s largest container port, Felixstowe, is essentially at a standstill after 1,900 members of the Unite union walked out for eight days over failed wage negotiations.īased on trade data analysis by MDS Transmodal, the total value of containers impacted by the eight-day strike is estimated at roughly $4.7 billion.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |