India’s maritime industry is at a crucial juncture, as more than 20,000 dockworkers are preparing for a national strike beginning August 28.
The strike is being driven by the demands of pay revisions, arrears and protecting existing benefits. It threatens to interrupt India’s busy ports which are vital to its economy.
The strike, as tensions increase, could change the dynamics of competition between India and China on the world maritime market.
India’s maritime commerce: how big is it?
According to UNCTAD, India’s economy relies heavily on the maritime industry. Its ports will handle 19.7 million Twenty-foot Equivalent Container Units (TEUs), in 2022.
India is ranked among the top 10 countries in terms of container traffic.
It pales, however, in comparison with China, who is the leader in this field, having handled 269 millions TEUs during the same period.
India’s port are more than just a place to enter and leave goods. They are the lifeblood of India’s economy.
In 2021, India will export $858 billion worth of Information and Communication Technology goods. This is second only to Hong Kong.
India is a major player in global trade, as evidenced by the exports of computers, consumer electronics and electronic components.
Statista
What is the severity of dockworkers strike?
India’s ports could be brought to a halt by the impending dockworkers strike.
The consequences of a possible suspension of cargo operations in major ports could be serious.
The supply chain would be affected by delays in loading and unloading vessels, as industries that depend on timely delivery of goods are affected.
Long-term disruptions in India’s economy, which is heavily dependent on exports – from fashion to electronics – could have catastrophic consequences.
It would have a ripple effect on retailers, manufacturers and other industries that depended on the flow of raw materials and goods.
The cost of logistics can increase and affect the final price of products.
Such a disruption would have far-reaching economic consequences, with India’s trading relationships being strained and its global position challenged.
India’s global position on container throughput
India’s economic stability is dependent on its position as a global leader in container traffic.
China will have 269 millions TEUs by 2022. This is a reflection of the fierce competition in Asia’s maritime sector.
The global maritime industry is also characterized by a variety of players. Other important countries, like the United States with its 62,000,000 TEUs and the UAE with their 20,000,000 TEUs are examples.
This strike will have a major impact on India’s economy, which is heavily dependent on maritime trade.
Supply chain disruptions could pose operational problems for retailers and manufacturers.
Businesses may be forced to find alternatives if delays are prolonged, which could increase costs for logistics and raise prices for customers.
India may also lose its market share as the world’s trading community looks for other ports in order to avoid delays. This shift in focus could be a long-lasting one, affecting India’s ability to compete against maritime giants such as China and India’s resilience.
China is ready to exploit any weakness in a region with fiercely competitive maritime trade. India’s future will be determined by how it handles this difficult challenge.
Post China vs. India – Who is the dominant maritime power as Indian dockworkers strike nears? The original version of this article appeared at ICD
