Second Strike at Liverpool to Add to European Port Congestion, Slow Product Delivery

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Second Strike at Liverpool to Add to European Port Congestion, Slow Product Delivery
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Dockworkers in Liverpool, a significant U.K. port and a port where the U.S. is the No. 1 trading partner, will start a seven-day strike on October 11.

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"The prior strikes in Felixstowe may have ended, but congestion at the port is on the rise," said Alex Charvalias, supply chain in-transit visibility lead at MarineTraffic. According to its data, on Oct. 4 the total TEU capacity waiting off ports limits was roughly three times higher than usual, reaching more than 99K TEUs .

While the situation in Felixstowe worsens, other ports are being disrupted as a result of the prior strikes in Felixstowe and Liverpool.The weekly average TEU capacity waiting off port limits seems to be the highest recorded in recent months reaching 37,593 TEUs the last week of September.Braun told CNBC that the disruptions of past strikes and the upcoming Liverpool strike will unquestionably aggravate the existing congestion.

"If the Felixstowe dockworkers agree to a third strike it will for sure create additional delays and extra costs for all transport companies involved," Braun said."However, as the consumer demand is low right now retailers could adjust their operation to the strike and plan deviations around. Unite made it clear that until they have reached their goal in pay rise, they will continue with further strikes, which eventually see congestion and delays rise to an unseen level.

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