Strike hits Hong Kong port
BILLIONAIRE Li Ka-shing’s Hongkong International Terminals is losing customers as a strike by dock workers causes a 20-fold increase in vessel berthing times.
BILLIONAIRE Li Ka-shing’s Hongkong International Terminals is losing customers as a strike by dock workers causes a 20-fold increase in vessel berthing times at the world’s third-biggest container port.
Evergreen Marine Corporation Taiwan and Japan’s Mitsui OSK Lines have diverted some of their ships after facing delays, the companies said on Tuesday. The time needed to berth a vessel has lengthened to 60 hours from three, the South China Morning Post reported on Tuesday.
The strike entered its seventh day, threatening to damage Hong Kong’s reputation as a trade hub for China at a time when competition with mainland ports is intensifying. Dockers are demanding a 25% pay increase as rising living costs and record home prices spur discontent in the former British colony.
“Hong Kong’s port is well known for its efficiency and the high frequency of scheduled services,” Geoffrey Cheng, an analyst at Bank of Communications, said yesterday. “The strike is definitely a blow to the business in the short term. Workers may run out of patience as their compensation has failed to catch up with economic growth in recent years.”
Hongkong International Terminals is operated by Mr Li’s Hutchison Port Holdings Trust, and with its partner, Cosco Pacific, controls more than half the city’s port capacity. Hutchison Port Holdings fell 2.3% to close at 84c in Singapore yesterday.
The company has lost about HK$5-million ($644,000) a day, and may face claims from shipping companies, Gerry Yim, MD of Hongkong International Terminals, said yesterday.
Evergreen Marine said it had diverted at least three ships after more than 10 vessels faced delays, and Mitsui OSK said more vessels may skip Hong Kong stops. Orient Overseas International, the city’s biggest container carrier, said its ships were also delayed.
Dockers are demanding a 25% pay increase as rising living costs and record home prices spur discontent
“We hope that this is a shortterm situation,” Orient Overseas spokesman Stanley Shen said.
“However, if prolonged, we have alternative plans to assist our customers,” he said.
About 450 protesters, including students and labour activists, remained on the street outside the entrance of the port in the Kwai Tsing district, Ho Wai-hong, a representative of the Union of Hong Kong Dockers, said.
The dock workers, who are employed by contractors, are demanding that hourly wages rise by HK$12.50 from about HK$50 (R59), the union said.
Strikers will not accept an offer of a 5% pay increase, Radio Television Hong Kong reported on its website, citing Lee Cheuk-yan, a legislator from Hong Kong’s Labour Party.
The Hong Kong Shippers Council, which represents the city’s exporters, importers, traders and manufacturers, said members should seek alternatives because of the strike.
The strike “is going to ruin Hong Kong’s reputation”, said Willy Lin, chairman of the council. “A lot of brands, clothes, watches, cameras, even iPhone, iPad, they use Hong Kong as their regional distribution centre. We do need very efficient port operations.”
The city is the world’s thirdlargest container port by volume last year, behind Shanghai and Singapore. Hongkong International Terminals and its partner, Cosco Pacific, control about 55% of capacity there, according to UOB-Kay Hian Holdings.
The strikers are demanding direct talks with Hongkong International Terminals, the union, which represents about 500 people working at the berths, said on Tuesday. Bloomberg