India’s port operations face the looming threat of an indefinite strike as dockworkers prepare to escalate their protests over delayed settlements from a five-year contract agreed upon in August. Demonstrations have already begun, with a mass protest scheduled for December 10. Retired employees awaiting pension benefits are also expected to join the protests.
Six federated unions have announced plans to strike on December 17 if key issues are not resolved by December 15. This action would impact 12 state-owned ports, involving 18,000 workers and costing Indian exporters an estimated $15 million daily.
The August agreement included an 8.5% wage increase, backdated to January 1, 2022, along with a productivity-based reward plan. However, delays in implementing these terms have reignited tensions. While the government approved the reward plan in October, unions claim retroactive payments remain unpaid for some former employees.
The apparel and textiles industry, heavily reliant on Indian ports, is closely monitoring the situation. India is the world’s fifth-largest apparel exporter, with exports totaling $14.7 billion between April and August 2024. Major shipping lines, such as Hapag-Lloyd, are preparing contingency plans to minimize disruptions.
Despite these tensions, India’s ports have achieved significant productivity gains over the past decade. The average vessel turnaround time has dropped from 93.6 hours in 2013-2014 to 48.1 hours in 2023-2024, thanks to investments in new berths, terminals, digitization, and expanded connectivity.
The country’s maritime sector continues to expand, with major projects like the $9 billion Vadhvan Port underway. Private operators such as Adani Ports aim to double cargo handling by 2030, while DP World plans to alleviate trade bottlenecks by expanding its footprint in India.
The next few days will be critical as the government works to address labor demands and prevent a strike that could disrupt global supply chains and India’s growing maritime industry.