Threat of Indian port strikes eases shippers concerns

Indian exporters and importers are breathing a sigh of relief as fears of a nationwide strike by unionised dockworkers across major government ports fade, according to industry sources.

Labour groups last month threatened to launch indefinite work stoppages from 17 December in a bid to force the government to implement terms of a wage contract hammered out two months ago at port management level.

Sources told The Loadstar officials at the Ministry of Shipping had finally received a mandatory “go-ahead” to approve revised contract conditions for signature.

“A formal order is expected quickly, mostly by tomorrow,” said one source, privy to the information. “Officials have already been instructed.”

Union sources, however, said strike preparation plans would continue until the settlement that was agreed in late September was implemented.

To drum up worker support, several rounds of demonstrations have been scheduled for the run-up to the strike deadline, the first [protest was held outside all port headquarters on 5 December. The next campaign has been scheduled for tomorrow.

“It is also decided to mobilise pensioners and family members to hold mass demonstrations, with the support of serving employees, before the administrative office of the major ports, demanding implementation of the bipartite wage negotiation committee settlement and payment of various pension benefits,” said the leaders of a six-member labour federation.

“We have no official update as of now, regarding the order,” one union source said. “We are proceeding with our action but will definitely review should there be a positive missive.”

Meanwhile, container lines serving Indian trades had begun warning customers of potential cargo delays and advising them of contingency measures being explored to keep supply chains as uninterrupted as possible.

“Our teams are working to assess any impact on operations and are in close communication with all relevant parties to ensure delivering the latest updates that might impact your cargo planning,” said Hapag-Lloyd in an advisory last week.

A stable and seamless port environment is more critical than ever, as logistics challenges caused by the Red Sea crisis persist, say sources. Additionally, Indian export trade data showed some volume rebound signals last month, after months of declines, and any port disruption could only compound industry concerns.

“The rising tensions between Israel and Iran have continuously led to logistical challenges, as most of our trade to Europe, Africa, the CIS and the Gulf region happen through the Red Sea route or the Gulf region,” said Ashwani Kumar, president of the Federation of Indian Export Organisations.