UK dockworkers strike expected to disrupt already fragile supply chains

A dockworkers’ strike at Britain’s crucial port threatens to deal a blow to supply chains already reeling from COVID-19 pandemic disruptions.

The founder of toy retailer The Entertainer, Gary Grant, speaking regarding the massive potential strike at the UK’s Port of Felixstowe, said it was probably going to be an expense similar to when the Suez canal blockage caused a lot of knock-on costs on the stuck ships.

Nearly 2,000 employees at the port, the nation’s largest for containerized exports and imports, are set to strike for eight days, rising fears that the disruption could deal yet another significant blow to an economy facing inflation woes and a possible recession.’

The Port of Felixstowe handles about a third of the country’s total container volume and is the most essential hub for the country’s trade with Asia, and made progress towards reversing dwell time issues brought on by the pandemic over the last two years.

However, that progress would be threatened by the strike, with estimates indicating it could take nearly 24 days to clear the backlog resulting from the labor dispute. A data and analytics firm, Russell Group, said the strike would likely delay $800 million in trade.

According to the Russell Group, the disruption could also ripple through the rest of the nation’s economy, delaying shipments to UK retailers as they prepare for the busy holiday shopping season.