LP 74/2020 Severe Ship Delays at Argentina Port for Workers Strike

A month-long wage strike initiated by URGARA (Grain Surveyors Union), SOEA (Soy Crushers Union) and FTCIODyARA (Oilseed Workers Union) on 9 December 2020 has paralyzed Argentinian ports and about 140 ships are stuck at anchorage waiting for cargo operations. The strike is expected to continue during the Christmas as the unions issued a joint statement on December 23 and held no expectation that negotiations will restart over the short term.

I.          The strike

As one of the world’s breadbasket, Argentina has seen the war between food processing workers and agro-export companies on welfare issues for ages. It has been common for workers and unions to go on strike for their own rights. With the pandemic situation going on, the labor groups urge for a pay increase big enough to compensate employees for high inflation and the risk of working during COVID-19. However, the CIARA-CEC chamber of soy oil manufacturers and exporters has not come to a deal with them, extending the work stoppage.

The ongoing strike has affected grain processing areas north of Rosario and agricultural port facilities including the ports of San Lorenzo, San Martin and Timbus, where nearly 80% of Argentina’s grain products are shipped. Strike by SOEA and FTCIODyARA may affect operations of grain processing plants, leading to shortage of meals and oils, while URGARA representing 22 thousand workers at 22 private ports will directly affect the loading and unloading of cargo at port. Meanwhile, the strike since December 1 by the crew of pilot boats has affected all upriver ports and delays happen a lot although the pilots are being temporarily transported by the Coast Guard.

In addition, IMPACI (a maritime trade union) decided to follow URGARA and FTCIODyARA and join the strike from 06:00 on December 23 to 18:00 on December 24. It will resume work at 06:00 on December 26 after the Chiristmas holiday. The organization consists of staff union (SEAMARA), seamen’s union (SOMU), private security (SUTRAVIP), San Lorenzo port stevedores (SUPA), etc.

II.       Ports and berths

According to the information from local agent ANTARES, updated on December 23, ports where meals and oils are loaded are shut down by strike while loading of wheat and corn are less affected. A list of grain loading berths and whether they are affected is provided below. As the negotiation remain ongoing, the situation may change if agreement can be reached.

III.    Advice to Members

For Members shipping grains from Argentina, soybeans especially, are advised to fully evaluate the situation and risks following the strike before entering into contracts and beware of the applicability of strike or force majeure clauses in this specific context. The Club will keep following on the development and have the Members posted.

For more information, please contact the loss prevention team.