Strike update: France and Germany

France: The strike which began early March 6,2023 at three major terminals operated by France’s Elengy- Montoir-de-Bretagne, Fos Cavaou and Fos Tonkin was initially expected to last only 48 hours but had been extended to March 24th 2023. The terminals ceased operations on March 6 due to the strike action, which had been due to end on March 14 before unions decided to extend it. The strike action had several impacts on operations and is set to cause significant disruptions across France, both on ocean and inland flow of cargo. Major contingencies include Evelyn Maersk omission of the Port of Le Havre, while vessels MSC Vittoria and MSC Diana were delayed and depots were closed at the Port. On multimodal side, all trains were cancelled at both Port of Le Havre and the Port of Fos- sur- Mer and containers were being stored at inland depots.

This impacted all areas of the port, including container handling, oil and gas shipments and chemical processing. As a major gateway for international trade, FOS Port is critical for shipments to and from Europe, Asia, and Africa. The disruption of operations at the port has led to delays in cargo shipments, resulting in supply chain disruptions and increased costs for businesses. Shipping lines had to divert their vessels to other ports, causing further delays and increased transportation costs.

Germany: 27th March 2023, 24-hour strike called by various trade unions, including the GDL (German Train Drivers’ Union) and Verdi (United Services Union), have mainly affected the country’s rail and public transportation systems. The strikes have caused congestion at ports and terminals, leading to delays and supply chain disruptions. The impact on international logistics has been significant, as Germany is a major transit hub for cargo shipments to and from Europe.

Flights at 8 major airports, including those in Munich, Frankfurt and Hamburg, have been affected by the strikes. Hamburg, Germany’s largest port, has also been hit by the walkouts, with large ships unable to call at or depart from the port. Cargo transport on both the rail network and at the country’s ports has also been hit as dock workers join those on strike.

Strikes in France and Germany have the potential to impact international trade and logistics. The strikes in both these countries cause delays in hinterland networks, which lead to supply chain disruptions. The strikes have brought transport systems to a halt in Germany and caused unpredictable disruption in France.

Source: Ti-insight, Informa, Reuters, Maersk