2008 is becoming a year marked by serious industrial action and civil unrest. In Europe teachers, nurses and transport staff have all undertaken lengthy industrial action and the rising cost of staple foods has seen civil unrest and rioting in areas such as India and Haiti.
The increasing number of industrial disputes is having a serious impact on global trade and hitting the maritime industry hard, according to a leading specialist insurer.
The Strike Club is a mutual insurer that offers protection against the effects of strike and industrial action for the transport sector and is a market leader in providing delay cover, to international shipping and logistics firms.
It has said it fears that the ongoing disputes which have seen agricultural workers strike over the rising cost of foodstuffs and dock workers strike over privatisation of one of Europe’s biggest ports will only further impact the movements of foodstuffs around the world.
The club, which has its London offices in the Lloyd’s building, said the rising price of rice and wheat, both vital parts of the daily diet for many of the world’s population “could lead to widespread shortages in the world food chain and therefore unrest”.
A spokesman for the club explained: “If this situation worsens in the immediate or near future, as is widely predicted, it could put many regions and countries on strike watch as the world grapples with a problem which could have shattering economic consequences.”
It warned that the first few months of the year had been beset by industrial actions making shipping firms and their crews, already under intense pressure, fall behind schedule, thus seriously impacting on earnings and causing a hike in claims for delay insurance covers.
Since the beginning of 2008, says the club, there have been serious labour stoppages in Mormugao (India), Italy, Chile, Pakistan, Kenya and Greece, which has been hit at least twice.
Indeed, the ongoing walkouts by dockers in the port of Piraeus, Athens, provoked the port authority to file an injunction against staff who had been protesting against privatisation for several months.
A tax increase in Argentina on soya led to a three-week long farmers’ protest that greatly affected export shipments from River Plate ports. Argentina is the world’s third-largest exporter of this vital commodity. It was only at the beginning of April that agricultural groups suspended the nationwide strike for 30 days to allow negotiations with the government.
While the majority of insurance products exclude damage due to riot and civil unrest, The Strike Club says that companies, particularly transportation and shipping firms, can take out coverage to meet the costs of delays due to strikes at both ports and manufacturing facilities which impact on their ability to meet contract deadlines.
