# Factbox-What impact will strike at Britain’s busiest container port have?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Felixstowe Strike: Disruption to UK's Biggest Port
Meta Description: Over 1,900 workers at Felixstowe port are striking over pay, affecting imports of goods worth billions and leading to potential trade disruptions and
URL: https://financedigest.com/factbox-what-impact-will-strike-at-britains-busiest-container-port-havehtml

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LONDON (Reuters) – More than 1,900 workers at Britain’s biggest container port, Felixstowe, have begun eight days of strike action that will cause disruption to trade and supply chains.

The staff at Felixstowe, on the east coast of England, are taking industrial action in a dispute over pay, becoming the latest workers to strike in Britain as unions demand higher wages for members facing a cost-of-living crisis.

Below is a look at Felixstowe’s operations and the possible impact from the strike:

HOW BIG IS THE PORT?

About 48% of all containers brought into the UK are transported through the Felixstowe port, [according to the Unite union](https://www.financedigest.com/ita-airways-averts-strike-after-wage-increase-accord-with-unions.html "ITA Airways averts strike after wage increase accord with unions"), making it an important import hub for Britain.

Britain’s biggest and busiest container port, and also one of [Europe’s largest](https://www.financedigest.com/uk-card-fraud-losses-climbed-18-percent-in-2015-largest-rise-in-europe.html "UK CARD FRAUD LOSSES CLIMBED 18 PERCENT IN 2015, LARGEST RISE IN EUROPE"), Felixstowe handles more than 4 million ‘Twenty-foot Equivalent Units’ (TEUs) of goods and 2,000 ships arriving each year, according to its website.

Its container handling [capacity is forecast to double](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") to 8 million TEUs by 2030.

WHAT GOODS PASS THROUGH FELIXSTOWE?

Felixstowe imported 37.4 [billion pounds](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") ($44.2 billion) worth of goods last year, according to the Observatory of Economic Complexity (OEC) online data platform.

In 2021, its top imports included toys, [data processing](https://www.financedigest.com/crowdsourcing-of-data-to-drive-the-high-throughput-process-development-market.html "Crowdsourcing of data to drive the High Throughput Process Development Market") machines, and wooden and metal furniture, according to OEC data. During May this year, the main imports were furniture, computers and [automotive parts](https://www.financedigest.com/sales-forecasts-of-automotive-parts-remanufacturing-market-reveal-positive-outlook-through-2026.html "Sales Forecasts of Automotive Parts Remanufacturing Market Reveal Positive Outlook Through 2026").

At 9.12 [billion pounds](https://www.financedigest.com/edf-delays-uk-nuclear-project-to-2027-ups-price-by-3-billion-pounds.html "EDF delays UK nuclear project to 2027, ups price by 3 billion pounds") ($10.8 billion), the port’s exports amounted only to about a quarter of its imports, OEC data showed. Exports during May this [year included pharmaceutical products](https://www.financedigest.com/mild-sourness-products-is-expected-to-fuel-growth-of-sour-sugar-market-in-coming-years.html "Mild Sourness Products Is Expected To Fuel Growth Of Sour Sugar Market In Coming Years"), scrap aluminium and copper.

In May, [China was both the top](https://www.financedigest.com/byd-set-to-be-chinas-top-selling-car-brand-for-nov-tesla-gains-data.html "BYD set to be China’s top-selling car brand for Nov, Tesla gains -data") origin and destination country for most goods transported through Felixstowe.

WHERE DO IMPORTED GOODS GO FROM THE PORT?

About 70% of containers transported through Felixstowe are delivered, via road and rail links, to a region in the middle of [Britain known in the logistics trade](https://www.financedigest.com/britain-launches-trade-system-for-developing-countries.html "Britain launches trade system for developing countries") as the “golden triangle.

The triangle, which is within a four-hour drive of 90% of the British population, is [home to the national](https://www.financedigest.com/still-living-at-home-a-third-of-the-nation-cant-afford-to-rent.html "Still living at home? A third of the nation can’t afford to rent") distribution centres of many of Britain’s high street brands and retailers including Tesco, Asda and Marks and Spencer.

WHAT TRADE COULD BE AFFECTED BY THE STRIKE?

The [strike could disrupt](https://www.financedigest.com/uk-airports-face-christmas-disruption-as-border-staff-to-strike.html "UK airports face Christmas disruption as border staff to strike") more than $800 million in trade including in clothing and electronic components, causing trade to be diverted to smaller UK ports as well as international ports including Wilhelmshaven in Germany, risk management firm Russell Group said.

The [disruption spells more uncertainty for businesses](https://www.financedigest.com/german-businesses-expect-only-mild-recession-as-disruptions-ease.html "German businesses expect only mild recession as disruptions ease"), consumers and governments and could exacerbate shipping congestion and backlogs caused by the coronavirus pandemic, Suki Basi, Russell Group MD, said.

WHAT IMPACT CAN [CONSUMERS EXPECT](https://www.financedigest.com/u-s-consumers-inflation-expectations-highest-in-8-years-ny-fed-says.html "U.S. consumers’ inflation expectations highest in 8 years, NY Fed says")?

Paul Davey, the head of corporate affairs at Hutchison Ports, the Hong Kong-based operator of Felixstowe, said that while local haulage firms would lose money from the strike, [consumers around the country would not see](https://www.financedigest.com/britains-next-sees-lower-profit-in-2023-as-consumer-outlook-darkens.html "Britain’s Next sees lower profit in 2023 as consumer outlook darkens") a big impact.

“Most of the containers… are coming from the Far East. They are on long [supply chains,”](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") he told ITV on Monday. “It will be an impact but not massive.”

A spokesperson for Sainsbury’s said the [retailer was monitoring the situation closely and had contingency plans in place to ensure products](https://www.financedigest.com/french-retailer-carrefour-to-freeze-prices-on-100-products-to-tackle-inflation.html "French retailer Carrefour to freeze prices on 100 products to tackle inflation") were available.

[Retailers will try to reroute freight through other container ports or use alternative transport to ensure products remain](https://www.financedigest.com/global-food-makers-retailers-remain-in-crisis-mode.html "Global food makers, retailers remain in crisis mode") available, said Andrew Opie, director of food and sustainability at the British Retail Consortium.

“Fresh food will be unaffected as most of it goes through the roll-on roll off-port at Dover,” Opie said.

($1 = 0.8466 pounds)

(Reporting by Sachin Ravikumar in London and Yadarisa Shabong in Bengaluru; Editing by Gareth Jones)


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