Ningbo Trucker Strike Ends

Ningbo Trucker Strike Ends

The week-long trucker strike at the Port of Ningbo has ended. It may take awhile before port operations return to normal as they try to work through the backlog. According to the JOC, “the labor action came in the midst of peak season, when ships headed to the U.S. are full and reports were proliferating of cargo booked at lower freight rates being left behind, or rolled, to subsequent sailings”.

Freight haulage rates are expected to rise from both Ningbo and Shanghai as “drayage truckers who haul containers into and out of marine terminals are a decentralized, volatile segment of the supply chain on a global basis”. These drivers are usually owner-operators whose take-home pay is impacted by terminal congestion and rising diesel costs.

Importers and exporters with containers transiting the Port of Ningbo should expect some delays to continue as well as missed or rolled sailings as a result of the week-long work stoppage.