Felixstowe Port strike could lead to £700m hit to trade

The upcoming eight day strike at Felixstowe Port could disrupt trade worth up to £700m, experts have warned.

According to The Times, experts have said that the strike – which includes 1,900 dockworkers, could disrupt supplies to the nation’s supermarkets and exports from firms from now until Christmas.

The outlet added that the impact will most likely be felt by retailers such as Asda, John Lewis, Tesco and Marks and Spencer with clothing and electronic components to be among the goods most affected.

Suki Basi, managing director of trade consultancy Russell, said: “The large exposure of British companies from the disruption is a real-time example of ‘connected trading risk exposure’. The disruption creates ripple effects across the economy, from supply chain disruption for organisations to potential higher prices for consumers.

“Ports across the globe are facing congestion, due to a backlog caused by the pandemic. These strikes could increase the backlog.”

The Times also revealed that Maersk, the world’s largest shipping line, has already begun cancelling calls into Felixstowe and is instead diverting its containers to other European ports.

The news comes after dockworkers decided to strike after demanding a pay rise due to the current levels of soaring inflation and in recognition of their work during the pandemic when they also accepted below-inflation pay settlements.

However, the port of Felixstowe has so far offered a 7% rise and a one-off £500 payment to its staff. Following a breakdown in talks, Unite, the dockworkers’ union, called for a strike until Monday 29 August.