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Southeast Asian ports may face strike crisis

Time:2021-12-15 Publisher:Kevin Num:4032

Some time ago, the degree of port congestion in Southeast Asia was still not optimistic. This leads to tight shipping space and rising freight rates.

Take Vietnam as an example. After lifting the blockade, export demand picked up rapidly. This makes the shipping space become very tight all of a sudden, and the freight is also rising. 

Vietnam's exports rebounded after the end of the blockade, and freight rates continued to rise。

Recently, however, there have been reports of strikes in many ports in South Asia, which may worsen the current situation.

Truck drivers strike in Port Klang, Malaysia

The latest news shows that the remarks made by the members of the port in Congress are suspected of accusing the government of not managing the traffic near the port. It will allow truck drivers in Port Klang to start a week-long strike.

The aim is for the government to repair the roads around the port. If the government does not do so, the strike will come as scheduled.

This is a big blow to shippers and freight forwarders. If the strike is implemented, the whole Malaysian supply chain will be seriously affected.

Freight forwarders said that this would lead to the interruption or paralysis of the supply chain of a variety of commodities. In particular, it coincides with the existence of the epidemic. They want truck drivers to make a careful decision.

At the same time, they also hope that the heads of the government and the trade union will actively discuss and strive to reach a solution recognized by both sides.

According to statistics, not only freight forwarders, shipping associations and shipowners' associations also hope that stakeholders can actively communicate and don't make things worse.

Indian ports are also facing a strike crisis

Look to India's ports. As the major ports are facing the pressure of freight growth, now the ports are facing a new strike crisis.

The union voted to hold a strike after December 15 in order to realize their demands. The most important is the issue of salary and the introduction of the new law.

It is understood that the new bill aims to turn the port into an independent company and make them better compete with other private ports. However, this may lead to the unemployment of port workers.

The union demanded that the government's decision be revoked and that additional concessions be provided to operators of major ports.

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