8 Day Strike At Container Port Felixstowe Starts Today - Supply Chains Issues Likely

21st August 2022

Strike action will bring Felixstowe to a standstill from today Sunday 21 August 2022 and will cause major logistical problems for maritime and road haulage transport entering the port. Felixstowe is responsible for 48 per cent of the UK's container trade.

The Felixstowe Dock and Railway Company is extremely profitable; its most recent accounts show that it made pre-tax profits of £61 million in 2020, when it also paid out £99 million in dividends.

The company's dividends are paid into a complicated company structure but are principally received by the organisation's ultimate holding company, CK Hutchison Holdings Ltd. It is registered in the Cayman Islands and listed on the Hong Kong stock exchange.

Unite regional officer Miles Hubbard said: "Strike action at Felixstowe will inevitably create huge disruption across the UK's supply chain.

"This dispute is of Felixstowe's own making. Strike dates have yet to be announced but even at this late stage the dispute could be resolved by the company returning to negotiations and making a realistic offer."

About 2,550 people work at the Port of Felixstowe, which is the UK's biggest container port, handling 48% of container trade.

About 1,900 Unite members walked out from 07:00 BST for eight days, after rejecting a 7% pay offer from Felixstowe Dock and Railway Company, which operates the port.

The offer also includes a one-off £500 payment.

Unite says the pay offer is "significantly below" the rate of inflation but the port insists it is a "very respectable offer".

Some container ships are being diverted to Southampton but it remains to be seen how much extra the port can handle. It will also mean longer trips for haulage companies adding to costs.

Peak season is about to start with containers ships arriving from the Far East with goods for Halloween and Christmas.