Strikes in German ports could cause $6 billion in trade losses

Strikes in five major German ports could result in trade losses of six billion dollars, according to the Russell Group.

Russell’s ALPS Marine research found that the attacks affected goods such as cars and passenger vans valued at $399 million, goods transport vehicles valued at $129 million and pharmaceuticals valued at $717 million.

Dock workers went on strike for 24 to 48 hours in five major German ports: Hamburg, Bremerhaven, Bremen, Brake and Emden.

The reason for the strike was a deadlock in negotiations between unions and employers.

According to Russell’s ALPS Marine study, Bremerhaven is one of the world’s busiest ports for vehicles and passenger transport, importing and exporting approximately $67.32 billion (£52.71 billion) worth of goods each year.

READ: Failed wage negotiations trigger 24-hour warning strike in German ports

Suki Basi, Managing Director of the Russell Group, commented on the figures: “Stalemate negotiations between unions and employees ultimately lead to production lines coming to a standstill.

“This is a matter for the various parties involved in the negotiations to resolve. However, when such events occur, the impact will affect many other links in the supply chain, from manufacturers to ports and logistics operators to consumers and the insurers who provide the insurance coverage.”

“The result is operational disruptions at many levels, which need to be monitored in ever greater detail to ensure the resilience and long-term sustainability of business operations.”

In the USA, the International Longshoremen’s Association (ILA) has suspended negotiations on a new labor agreement with the United States Maritime Alliance (USMX).