It is reported that the increase in freight rates in Southeast Asia started quietly at the end of October and exploded at the end of November. By the beginning of December, the freight rates at almost all major ports in Southeast Asia generally increased by nearly one or two times in just one month.
Currently, shipping space in Southeast Asia is tight, freight rates are rising, and workers’ strikes may make the current situation worse.
Port Klang truck drivers to go on strike for week
Truck drivers in Port Klang will go on a week-long strike unless the government immediately repairs the roads connecting this major Malaysian seaport, following threats made by Port Klang area MP “Azmizam Zaman Huri” during a recent speech in Parliament on Selangor state budget issues. .
Huri said the transport industry would force a strike if the federal government did not allocate the required funds to the state government to repair the road to Port Klang.
The threat has raised concerns among stakeholders, who say it will cause massive disruption to supply chain management in the state and across the country.
Stakeholders who manage and provide port operations and logistics services in Port Klang described the threat as unreasonable and irresponsible.
They said in a joint statement that the strike will cause problems such as disruptions in the logistics supply chain for the supply of raw materials, food, vegetables, fruits and medical supplies, and may hinder the ongoing recovery of trade and the economy from the impact of the COVID-19 pandemic. “We urge and hope that all parties, including commercial vehicle drivers, will not take part in this irresponsible behaviour.”
Instead, they urged all relevant parties to initiate and participate in discussions on the matter through the correct channels and work towards an amicable solution to ensure adequate funding for the repair and maintenance of roads in Port Klang.
The 11 stakeholders who issued the call include Port Klang Authority, Northport Malaysia Bhd, Westport Malaysia Sdn Bhd, Port Klang Free Zone Sdn Bhd, Malaysian Freight Forwarders Association, Selangor Freight Forwarders and Logistics Association, Malaysian Freight Forwarders Federation , Malaysian Freight Services Association, Malaysian Shipping Association, Central Region Shipping Association and Malaysian Shipowners Association.
India’s major ports face “indefinite” strike by port workers, unions
India’s major public ports are already facing pressure for cargo growth due to increasing competition from non-government freighters led by Adani Group. The ports are facing new threats of strikes after the government passed new legislation to reform the management system.
The union representing dockworkers has voted to hold an indefinite nationwide strike on or after December 15 to push forward a variety of demands, including pay talks and consultations on a new Major Ports Authority Bill.
“Subject to assurances from management, immediate action may be taken to discuss the rules of the bill with recognized (labor) federations,” a coalition of labor groups said in a notice to the Port Authority.
The new Ports Act, which replaces provisions enacted in 1963, aims to transform landlord ports into independent companies with greater functional autonomy and place them in a freer, less regulated operating environment in order to better interact with Private small port competition.
However, unions fear the changes could lead to job losses for port workers and the privatization of port activities.
They demanded that the government’s anti-port and anti-labor decisions be reversed and additional benefits be provided to corporate, public-private partnership (PPP)/BOT (build-operate-transfer) operators of major ports.
India has 12 major government-controlled ports, of which Ennore Port (now renamed Kamarajar) near Chennai has been merged.
Jawaharlal Nehru Port Trust, which has a sizeable share of the container shipping business in India, is on track to develop a 2.4 million TEU port capacity under a two-phase concession granted by PSA International mid-term expansion.
From a trade perspective, the planned strike action comes at a time when shippers are scrambling to find vessel capacity to take advantage of recovering market conditions.
Therefore, any supply chain disruption may increase difficulties and slow down the growth of port throughput.
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