Strike action at Felixstowe, the UK’s busiest container port, could have massive implications for the nation’s supply chains. The pandemic related cobwebs are yet to be shaken off, so disruptions such as strike action could rapidly reverse the recent recovery. We are already seeing vessels and shipments avoiding the port with vessel TEU capacity dropping by a whopping 37.6% compared to last week – and this is only day 1.
Felixstowe is a global port – the longer the strike lasts, the larger the ripple effect on container flows and carrier performance around the world.
The strike is already causing vessels to redirect to nearby London Gateway with a 45% increase in vessel capacity volumes calling there in the last week. If the action continues, we may start to see the impact on consumer goods. At a time when UK businesses are facing rising costs and reducing consumer demand due to inflation, supply chain issues could spell disaster for many beleaguered companies.