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Strikes in multiple ports in Australia caused serious logistics delays

As port workers’ strikes escalate in several major ports in Australia, Maersk issued a announcement warning that from January 4 to January 15, Australia’s second-largest port operator, DP World Australia, will be affected by strikes involving Sydney, Melbourne, Brisbane and Fremantle.

As a result of this strike, Maersk’s operations in Port Sydney, Port Melbourne and Port Brisbane were significantly affected. At Port Sydney and Port Melbourne, the strike will take place between 6:00 on 8 January 2024 local time and 00:00 on 9 January 2024 local time, and between 22:00 on 11 January 11 local time and 6:00 on 13 January, during which time the relevant terminals will cease all shipment operations. Brisbane’s affected time period will be 7:00 on 8 January 2024 local time and 00:00 on 9 January 2024 and 00:00 on 12 January local time, and will also stop all shipments.

The strike was initiated by the Maritime Alliance division of the Australian Trade Union CFMMEU as a result of a labor dispute with Global Ports Australia. The strike began in October 2023, and has taken place in several rounds so far, severely affecting the operation of several ports in Australia.

The strike has caused some 45,000 containers to build up, causing huge economic losses.The shutdown means that all kinds of goods, including imported household appliances, pharmaceuticals, etc., as well as ships loaded with local products, such as exporting red meat and fresh fruit, will face shipping delays of 10 to 12 days.

Brian Hack, Managing Director of EES Shipping, expressed deep concern about this, noting that Australia’s economy and reputation would suffer further damage if the strikes were not resolved as soon as possible.Hack added that the issue was not limited to the dispute between DP World and the Australian Maritime Alliance, but that Australian companies were suffering significant losses due to continued delays and uncertainty.

Global Ports Australia operates port operations in Melbourne, Sydney, Brisbane and Fremantle, handling 40% of Australia's inbound and outbound cargo, providing important support for the country's logistics and trade.

Given the logistics delays and impacts that this strike could cause, relevant enterprises and organizations need to be prepared in advance to address potential logistics challenges.

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