$800 million could be lost in trade in Felixstowe port strike fallout

The proposed strike at the Port of Felixstowe could result in over $800 million in trade being disrupted according to the ALPS Marine analysis by Russell Group. 

Over 1,900 members of the Unite union will strike at the port between 21 August until 29 August in a dispute about a pay increase.

Analysis shows that clothing ($82.8 million) and electronic components ($32.3 million) will be the commodities that would be impacted by the strike. 

The analysis was based on previous trade flows at Felixstowe in this August period. 

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Felixstowe plays a crucial role in global trade, feeding UK exports to larger European ports including Rotterdam ($108 million) and Hamburg ($138 million).

Many experts believe that because of the disruption at Felixstowe, trade will be diverted to smaller ports in the UK but also other international ports including Wilhelmshaven, Germany, which has a significant higher trade inflow than Felixstowe at this same period, at around $1 billion.

Earlier in the summer a third strike within a handful of weeks took place in Germany following a collapse in negotiations between dockworkers and employers.

Suki Basi, Russell Group MD said: “The disruption at Felixstowe spells more uncertainty for businesses, consumers and governments alike.

“As our analysis has shown today, these strikes could increase the backlog and in doing so, create even more delays, and the effects of this will only be registered in the coming weeks and months.”

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More disruption is on the way for the UK’s logistics sector as earlier this week more than 500 port operatives voted strike over pay and conditions at the Port of Liverpool.