Indian port workers are set to begin an indefinite strike on August 28, demanding long-overdue wage hikes and enhanced benefits. The strike could severely disrupt cargo handling and exacerbate global supply chain congestion, particularly at Asian and European ports.

The dispute centers around unresolved wage negotiations dating back to 2021, when port workers first submitted their demands following the expiration of the previous agreement. Despite multiple negotiation attempts, no progress has been made, prompting approximately 20,000 dockworkers across India’s major ports to join the strike. The disruption could have far-reaching consequences for both domestic and international trade, especially during the peak festive season.

Indian port workers are set to begin an indefinite strike on August 28, demanding wage hikes and enhanced benefits that have been delayed for years. The strike threatens to severely disrupt cargo operations, worsening congestion at major ports in Asia and Europe. The workers' unions have issued a formal warning to the Indian government, stating that they will continue the strike until their demands are met. This disruption is expected to have a significant impact on global trade, further delaying shipments and affecting supply chains worldwide.

The dispute traces back to March 2021, when India’s Ministry of Shipping established a bipartite wage negotiation committee to address port workers’ concerns. Workers submitted their demands six months later, before the previous agreement expired in December 2021. Despite multiple meetings, the negotiations failed to yield any tangible results, leaving workers frustrated after more than three and a half years without progress. Around 20,000 dockworkers from major Indian ports, including Chennai, Cochin, and Mumbai, have now united in support of the strike following a recent meeting in Thoothukudi, Tamil Nadu. The unions assert that the government’s lack of engagement has left them with no choice but to take drastic action.

While the immediate effects of the strike may seem manageable, industry experts warn of long-term repercussions if it continues. The strike could halt cargo handling at 12 of India’s largest ports, leading to widespread delays and escalating costs for businesses. Freight forwarding company Yusen Logistics (India) has already alerted customers about the impending disruptions, noting that the strike could affect domestic and international supply chains, especially during the peak festive season. The workers are not only seeking wage revisions but also pension benefits and protection of their existing entitlements.

The All India Port Workers’ Federation, representing six major unions, emphasized that the previous wage and benefit agreement expired in December 2021 and called for a retrospective settlement starting January 2022. The Federation expressed concerns over deteriorating labor relations at Indian ports and warned that the strike could lead to cascading effects across global supply chains, particularly in industries reliant on Indian exports.

With India being a major hub in global maritime trade, handling 1.62 billion tonnes of cargo annually, the strike’s implications could ripple through the global economy, affecting industries dependent on raw materials, intermediate goods, and finished products from Indian ports. The government has yet to set a new date for negotiations, but intervention may be crucial to prevent further escalation.