The Port of Felixstowe is the largest container port in the United Kingdom, and accounts for and estimated 48% of all containers processed within the U.K. is facing a labor strike that will undoubtedly cause delays within the global supply chain. Similarly, the Port of Liverpool has been notified of a planned strike, which is sure to worsen port conditions and delays. So what does this mean for the mobility industry?
While there is no magic wand to wave to make sure your transferring employees household goods, or temporary living situations are void from the effects of this strike, being prepared to answer some common questions can help prepare you and your employee for what is happening.
We sat down with our Director, Global Supply Chain Management, Oliver Dubester to help better understand how this labor strike influences the global mobility industry.
Question: What does this mean for goods that are currently in transit or waiting for delivery?
Answer: “There is a lot that can happen, things we can prepare for, and things that are out of our, or our supplier partner’s, control. For household goods that are currently in transit, they may be able to reroute to a different port. While that may seem like the logical answer and solution, we have to remember that if they are rerouted to other countries, we are adding in another layer of customs and transit costs for crossing borders with deliveries. More likely than not, the original delivery spread will no longer be accurate, and often will be extended. This is where the domino effect of mobility can be felt, as temporary housing might need to be extended, and the impact on visas and residency permits may be felt as well.”
Question: How common are labor strikes within the supply chain industry, and has there been an increase due to the pandemic and financial situations arising over the past 3 years?
Answer: “There is always the potential for strikes within unions. Most ports and companies with shipping containers have contingency plans for when events like this happen. However, these two recent strikes shed spotlight on some of the difficulties caused by the pandemic, especially people rethinking their career paths. Hopefully some kind of agreement will happen soon, but for now, please keep this in mind and counsel accordingly if you have transferees moving into/out of the Europe.”
Question: What should we be telling our transferring employees?
Answer: “Over communication and a proactive approach is going to be key when we start hearing about potential supply chain delays. There is a lot of unknown variables that make having a simple, direct answer almost impossible. While the current ocean freight market is crowded, we can assume most international household goods moves will be delayed. Companies are altering their schedules to avoid Felixstowe until after the strike, where applicable, but there will likely be a period of congestion after the strike, as there will be a back log of containers to deliver, and the Liverpool Port could follow suit and go on strike as well. Where able, containers can be rerouted to other ports and trucked in to the U.K., however the shortage in truck drivers, crews, and equipment may cause an additional layer of transit times. We will continue to monitor the ongoing situation and provide updates accordingly.
About Oliver Dubester:
Oliver Dubester serves as Odyssey Relocation’s Director of Supply Chain. Oliver joined Odyssey in April 2021 and brings with him, more than 20 years of Supply Chain Management experience, 14 of which were focused in the relocation industry. Oliver is responsible for developing and maintaining Odyssey’s Supplier Partner networks, coordinating and designing high-quality customer focused services and relationships that ensure our partners meet and exceed service level expectations, provide and remain a viable, cost-effective solution to our clients, while adhering to and practicing Odyssey’s Core Values. Oliver is a member of the Worldwide ERC and North Texas Relocation Professionals groups.
His expertise encompasses critical relocation supplier partner services including, Household Goods, Real Estate, Corporate Housing, Immigration Services, Destination Services, etc. Oliver has also supported both Corporate and US Government clients and has advanced knowledge of GSA and agency move coordination.
Oliver is a graduate of the University of Texas at Dallas with a degree in Business Administration. He resides in Plano, TX with his wife, daughter and their two Cocker Spaniels. He’s an avid golfer, albeit not very good, a big sports fan, and loves to be outdoors. The family loves to travel, especially taking cruises, and visiting new places.
