In Germany, labor is flexing: There are numerous quotes about history repeating itself if you Google “history repeats itself quotes.” Patterns that repeat themselves are common in the maritime industry. It usually comes in cycles, much like the exuberance seen in shipbuilding.
The history we are witnessing is taking place in Germany’s largest port, the Port of Hamburg (HPA). We witnessed the devastation caused by dockworker labor strikes less than a year ago. It caused months of congestion at German ports.
Ver.di, the union representing tugboat and bridge operators, among other critical public service jobs, declared a strike on Wednesday. Ver.di demands 10.5% more pay — or at least 500 euros gross (approximately $543) per month — for its employees. So far, the employer has offered slightly less than half of the union’s request, but in two steps.
Germany has Europe’s largest economy, and inflation is not decreasing.
Due to the wage dispute, productivity has slowed.
“Due to the massive restrictions expected from the announced warning strikes,” said Sinje Pangritz, head of corporate communications for the Hamburg Port Authority, in an email to American Shipper.
According to Andreas Braun, Crane Worldwide Logistics’ ocean product director for Europe, the Middle East, and Africa, approximately 30,000 twenty-foot equivalent units are waiting on 18 vessels attempting to enter the port.
“Carriers will not divert vessels to other ports,” Braun stated. “It will only hurt schedule reliability.” Yards will benefit from it by cleaning up some areas and transporting some backlog containers to the hinterland. This warning strike affects not only port workers but also hospitals, kindergartens, and city cleaning — in short, everything related to public services.”
According to Sea Intelligence, vessel dependability is gradually improving. The lack of manufacturing orders has allowed ships to move in and out of ports more quickly, but we all know that snarls in port productivity have a knock-on effect. And the ripple effect spreads quickly from the source of the slowdown to nearby ports.
The next round of talks between the two sides is scheduled for Monday through March 29 in Berlin. While this is only a three-day gathering, we know there will be more in the future, potentially causing larger trade snarls. Its value is known to those who know what it is worth.
