Posted on July 22, 2024
The strike could “severely disrupt” German exports, as the timing coincides with peak shipping season
If members of Germany’s Ver.di union and its leaders cannot reach an agreement, the worst-case scenario would mean 11,000 port workers go on strike, FourKites consultancy said.
The dispute over the collective agreement has created strikes at German container ports, with Port of Hamburg activities stopping for two days before a fourth round of negotiations started. Wilhelmshaven, Bremen and Emden were then also affected, causing operational disruption in container terminals.
FourKites senior director international solutions, Mike DeAngelis said, “A prolonged strike would cause delays at Hamburg and Bremerhaven ports in August and could severely disrupt German exports, particularly affecting the automotive and machinery sectors, which rely heavily on these gateways for global trade. The timing coincides with peak shipping season, potentially causing inventory shortages for retailers preparing for year-end sales and hampering just-in-time manufacturing processes across Europe.”
He added supply chain bottlenecks could force companies to seek costlier alternatives, such as air freight or rerouteing through Rotterdam or Antwerp, leading to increased prices for consumers and eroding profit margins for businesses.
Hower, the two sides appear to be making progress toward an agreement, which will be voted on when the Ver.di Federal Collective Bargaining Commission meets at the end of August.
Data from FourKites revealed that following recent strikes on 9-12 July, the average duration of ocean shipments at Hamburg, Bremen and Wilhelmshaven increased by 61% year-over-year while late shipments increased by 45%. Average dwell time at major German ports increased by 9% during the strike period, while the average dwell time at Rotterdam, Antwerpen, Valencia and Piraeus remained flat.
With around 1.9M members, Ver.di is the second-largest German trade union.
