Russell Group: German port workers strike could cost $6 billion in lost trade
Port strikes at five key five German ports may cost $6 billion (£4.71 billion) in lost trade according to analysis by Russell Group, a data and analytics company.
There is a 24-to-48-hour strike by port workers across the five key German ports of Hamburg, Bremerhaven, Bremen, Brake and Emden, which started on Monday, June 17 and was expected to end on Tuesday, June 18. The strike was called because of stalled negotiations between unions and employers, Insurance Journal said citing Russell Group's data.
Russell identified supply chain disruptions for commodities such as cars & people carriers (costing $399 million/£313 million), good transport vehicles (costing $129 million/£101 million) and pharmaceuticals ($717 million/£559 million).
Bremerhaven is one of the world’s main hubs for cars & people carriers with over $67.32 billion (£52.71 billion) being imported and exported from that port annually according to the analysis compiled by Russell’s ALPS Marine.
“Stalled negotiations between unions and employees ultimately ends up resulting in stalled production lines,” commented Suki Basi, Russell Group’s managing director.
“That is a matter for the various parties involved in negotiations to resolve, but when such events occur the ripple effect touches many other links in the supply chain all the way from the manufacturers to ports, logisticians and ultimately the consumers and insurers which provide cover,” Basi said.
“The result is business interruption events at so many levels, which need to be monitored at an increasingly granular level to achieve business resilience and long-term sustainability.”
Formed in 1994. Russell Group is a data and analytics company that delivers creative and imaginative solutions for corporates and re/insurers, so they can successfully leverage their capital and ensure future viability.
