Indian Exporters and Importers Welcome Relief as Dockworker Strike Threats Fade
Labor unions threatened last month to begin indefinite work stoppages on December 17th, aimed to pressure the government into enforcing the terms of a wage contract negotiated two months ago at the port management level.
However, according to Loadstar, the Ministry of Shipping has now received official approval to move forward with signing the revised contract terms. The union has stated that strike preparations will continue until the agreement is fully implemented. Despite this, industry stakeholders remain optimistic that the ministry will resolve the implementation of the signed agreement, leading to the withdrawal of the strike.
For context, dockworkers across major ports in India announced plans for an indefinite strike starting December 17th, unless the government enacts wage revisions and productivity schemes by December 15th. Back in late September, the parties reached an agreement for wage increases that have yet to be implemented, prompting the dockworkers to feel frustrated at the “slow” pace of resolution. Ports that are privately owned are not expected to take part in the strike, per Maritime-Executive.
Premier Alliance Rolls Out Global Network; FMC Requests More Details
Premier Alliance –includes, Yang Ming, ONE, HMM – released their network for services throughout the main trade lanes. The initial phase of services will encompass four key east-west routes: trans-Pacific, Asia-Europe, Asia-Mediterranean, and Asia-Middle East, according to the schedules, the JOC reports.
Although the alliance has not yet determined whether to use the Cape of Good Hope or the Suez Canal/Red Sea route when launching in February, ONE has released documents suggesting that the Cape of Good Hope will handle 34 services, while the Suez Canal/Red Sea route will manage 29 services.
This alliance came to fruition due to Hapag-Lloyd leaving their shared THE Alliance with these parties, for a new formed alliance with Maersk, called The Gemini Cooperation.
Furthermore, the FMC has requested more information from the Premier Alliance before their start date goes into effect. According to the FMC, this additional information is required to “determine the potential competitive impacts of the arrangement.” The alliance filed their Premier Alliance Agreement request to the FMC on October 28th.
The FMC has 45 days from the date it considers the agreement responses complete to assess the agreement for any competitive or legal concerns before it can be finalized.