The decision was finalized after a two-day meeting held at the V.O.C. port in Thoothukudi. Union leaders from various federations such as the All India Port and Dock Workers Federation, the Indian Water Transport Workers Federation, and the National Federation of Port and Dock Workers of India gathered to discuss the course of action.

The previous wage contract expired in December 2021. Although the Ministry of Shipping established the Bilateral Wage Negotiation Committee (BWNC) in March 2021, after 31 months and seven meetings, the wage negotiations failed to reach a result during this period.

The demands for this strike include wage scale revision, applicable benefits, protection of existing benefits, implementation of past agreements, neutralization of price subsidies, and payment of overdue wages.

Union representatives warned that the "lazy attitude" of the Ministry of Transport has led to growing unrest among port workers and may disrupt port operations across the country.

As the strike approaches, the labor-management relationship atmosphere at major Indian ports has reached a critical point.

Union leaders emphasized that the situation has been deteriorating over the past five years, and there has never been any negotiation between the Ministry of Labor and the union federation. This is in stark contrast to the past when meetings were held every three months to solve problems.

The expected nationwide strike action will have a significant impact on India's port operations, likely disrupting the flow of import and export cargo and affecting the overall economy.

Logistics giants have also issued warnings that the upcoming strike may seriously disrupt cargo transportation, leading to delays, increased costs, and congestion.

As reported earlier, India's import and export trade has been hit by rising freight rates, port congestion and container shortages.

According to India's "Business Line", India's import and export trade has been hit by rising freight rates, aggravated congestion at transshipment ports and a shortage of empty containers. People in the shipping industry said that the degree of global port congestion has reached the highest level in 18 months. Long queues at transshipment ports waiting for berthing are not conducive to the timely delivery of goods.

Relevant people said that the freight rate from Kochi to Houston has risen from 2,400 US dollars to 7,600 US dollars. The freight rate to the west coast of the United States has tripled to 8,000 US dollars. The direct flight frequency from Kochi to European routes has also dropped from once a week to once every two weeks. Traders are seeking urgent intervention from the Indian government and suggesting providing security guarantees for passing ships along the Red Sea to prevent them from being attacked by the Houthi armed forces.

Reserve Bank of India governor: India's GDP growth rate in fiscal year 2025 will remain at 7.2%, and the benchmark interest rate and stance will remain unchanged.

According to India's "Economic Times" report, India's central bank governor Das announced on August 8 that the central bank's interest rate setting committee expects India's economy to grow by 7.2 in fiscal year 2025. "Domestic economic activity continues to be resilient. On the supply side, the steady progress of the southwest monsoon, the increase in cumulative kariff crop plantings and rising reservoir water levels have all been very positive for monsoon crop production. Manufacturing activity continues to grow, driven by improved domestic demand," he said." In addition, Das said that the central bank's monetary policy committee decided to keep its benchmark interest rate and position unchanged, maintaining the expected line of policy decisions.

The MPC also adhered to the monetary policy stance of "withdrawal of easing. "The MPC believes that monetary policy must remain on the established course while keeping a close eye on risks," Das said in announcing the policy decision."

India Foreign Trade Data for June 2024

According to data released by the Ministry of Commerce and Industry of India, in June 2024, India's total exports of goods and services were about US $65.47 billion, an increase of 5.4 percent over the same period last year, of which exports of goods were US $35.2 billion, an increase of 2.6 percent over the same period last year, and exports of services were US $30.27 billion, an increase of 8.9 percent over the same period last year, year-on-year growth of 10.8 percent.

The Great American Strike

The cooperation agreement between the East Coast Port Workers Union and the International Maritime Union is about to expire. If it is not renewed, it will strike from October 1. Sea-Intelligence predicted the strike would severely affect container shipping. Analysts believe that although the port has 13% excess capacity, but a week of strikes still need 6 days to resume, two weeks of strikes may delay port operations to return to normal until 2025, shipping giant Maersk issued an early warning.

The cooperation agreement between the International Labor Association (ILA), the East Coast port workers' union, and the US Maritime Union (USMX), the terminal management organization, will expire on September 30, and the International Labor Association has made it clear that if a new agreement is not reached, strike action will be launched from October 1.

In the face of this potential labor conflict, Sea-Intelligence, a Danish shipping data analytics company, stressed in its latest report that it is important to assess its impact on actual container traffic and the time it will take to recover after the strike ends.

Based on historical data, the company predicts that the throughput of U.S. East Coast ports will reach 2.3 million TEUs in October, with an average daily throughput of 74000 TEUs, of which 36000 TEUs are imported and 38000 TEUs are exported. In particular, it was noted that in the event of a strike, approximately 20,000 TEU of empty container loading operations would be blocked per day.

Once the strike is over, these backlogs of containers will need to be processed in addition to normal operating volumes. Sea-Intelligence assesses the ability to clear these backlogs by analyzing excess capacity at East Coast ports, which refers to the portion of the port that actually handles more than expected. The agency estimates that the port system has the capacity to increase handling by 13 percent compared to the projected October handling 2.3 million TEUs.

Further analysis shows that if the port's capacity exceeds the expected normal flow by 13% in October, it will take about 6 days for a one-day strike to clear the backlog of 74000 TEUs. If the available capacity of the port is more sufficient, the cleaning time may be reduced to 4 to 5 days.

Alan Murphy, CEO of Sea-Intelligence, pointed out that if a week-long strike occurs in early October, the impact may not be gradually eased until mid-November; and if the strike lasts for two weeks, port operations may not be fully restored until 2025. Normal. The forecast highlights the potentially serious impact of the strike on global supply chains.

Maersk also said in an update that any shutdown, regardless of its size, could have a profound impact on the supply chain. In particular, a complete shutdown in the Gulf of Mexico and the East Coast of the United States, even if it lasts only a week, may take up to 4 to 6 weeks to resume normal operations. During this period, a large backlog of goods and transportation delays will continue to accumulate, further Intensifying the pressure on the supply chain.

In response to potential disruption risks, Maersk is fully prepared and committed to actively assist customers in exploring alternative transportation routes, transportation methods and distribution solutions to minimize the impact on the customer's supply chain. At the same time, Maersk encourages all customers to maintain close communication with their representatives, jointly assess supply chain needs, and formulate personalized contingency plans when necessary to deal with various challenges that may arise.