Liverpool Port Strike To Cause Further Disruptions To UK Supply Chain
On 12 September 2022 dockworkers at the Port of Liverpool rejected their employer’s latest pay offer. Instead, they confirmed a two-week strike that could deliver more disruptions across the UK supply chain.
The agreed walkout will take place between 6:00am Monday 19 September and 6:00am Monday 3 October. It will coincide with the ongoing Port of Felixstowe strike action, potentially causing huge delays. Here, we provide an overview of what that means…
Why are dockworkers striking?
Dockworkers have been fighting for a pay increase amid rising living costs. Workers at the MDHC container services turned down Peel Port Ltd.’s offer of a 7% wage increase along with a one-time payment of £750.
In a ballot with an 88% turnout, 99% of those who voted chose strike action. Consequently, they follow Felixstowe whose 1900+ members of Unite union went on strike between 21 August and 29 August 2022.
Who will this impact?
Liverpool is Britain’s fourth-largest handler of seaborne trade. For retailers, the timing will hurt on account of this being the season of inventory restocking. And because of Liverpool’s role in transatlantic commerce.
Ireland in particularly will be impacted as the Liverpool docks play an enormous role in relation to ‘roll on/roll off’ traffic. The port handles a significant amount of container freight coming into and out of Ireland to both the United States and South America. These being two routes that carry a large number of pharmaceuticals and food exports.
What the experts are saying
Craig Poole, Managing Director at Cardinal Group, summarised the situation by saying “Conditions were already very challenging due to the impact of the strike at Felixstowe, so this strike is expected to cause further complications and add additional delays into UK client supply chains.”
He continued “The potential strike action at Felixstowe from 27th September until Wednesday 5th October will further compound the situation. Importers/Exporters should expect delays in haulage availability throughout this period and for several weeks afterwards.”
How to avoid disruption
It remains to be seen if a combination of management and non-unionised staff can keep capacity running. The recovery process could take longer than the strikes last and the effects will be felt both in regional and global logistics networks.
For businesses the current advice is to simply allow additional time when routing freight through the Port of Liverpool and to consider alternative shipping methods for critical cargo. You may be able to further mitigate possible disruptions by avoiding all demonstrations and planning for road travel delays near the port.
Where we can help
As ever, our teams will continue to monitor the developing situation and provide updates when we have them. Until then, we are always available to offer our analysis on the situation and help advise on your circumstances.
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