German dockworkers’ strike could cause revenue losses of up to $6 billion

Strikes at five major German ports could lead to trade losses of up to $6 billion (£4.71 billion), according to an analysis by data and analytics firm Russell Group.

A 24- to 48-hour dockworkers’ strike is currently underway in Germany’s five main ports of Hamburg, Bremerhaven, Bremen, Brake and Emden, which began on Monday, June 17, and is expected to end on Tuesday, June 18. The strike was called due to deadlocked negotiations between unions and employers, the Insurance Journal reported, citing data from the Russell Group.

Russell identified supply chain disruptions for goods such as cars and MPVs (costing $399 million/£313 million), vehicles for transporting goods (costing $129 million/£101 million) and pharmaceuticals ($717 million/£559 million).

Bremerhaven is one of the world’s most important transshipment points for cars and passenger transport vehicles. According to analysis by Russells ALPS Marine, over 67.32 billion US dollars (52.71 billion pounds) are imported and exported from this port every year.

“Stalemate negotiations between unions and workers ultimately lead to production lines coming to a standstill,” explains Suki Basi, managing director of the Russell Group.

“This is an issue that the various parties involved in the negotiations will have 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,” Basi said.

“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.”

Founded in 1994, the Russell Group is a data and analytics company that delivers creative and imaginative solutions to help companies and reinsurers leverage their capital and secure their future viability.