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Shipping Container Could Be Affected By Industrial Action

Wednesday, 29th June 2011

The shipping container industry could be affected by the proposed industrial action by public sector workers scheduled for tomorrow. Negotiations between the government and unions seem to have reached an impasse and strikes now seem inevitable.

Any minor delays at U.K ports will have a huge effect on shipping container traffic as congestion leads to goods arriving late, orders being cancelled and both boxes and vessels getting stuck or held in storage at ports. With many stores and suppliers reluctant to hold stock in these lean times, just in time deliveries are vital.

Containers for sale are unlikely to be effected by one days industrial action. Should it continue through the summer however lines may reconsider U.K calls. Many Asia-Europe routes have been cancelled recently as rates plummet due to overcapacity and lack of demand. Some lines are slipping back into the red and with U.S and Asia output figures looking much weaker than predicted the trend looks to continue.

Similarly container conversions too will not suffer from tomorrow planned strikes. Further industrial action could lead to an increase in container prices though if supply is restricted due to port delays. Having just come out of a long and testing recession the threat of industrial action is something many would seek to avoid.



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