What would happen to Spain’s economy if the strike of farmers and transporters blocked the ports

What would happen to Spain’s economy if the strike of farmers and transporters blocked the ports

On the third day of the farmers’ and transporters’ strike, the demand is “threatening” the product supply chain. Transport organizations already said it yesterday, Wednesday, that the “shortage of products” due to the blockade of the country’s logistics centers. A point that makes us wonder about the impacts that these measures could have if the majority unions reached block ports and maritime trade.

The vindication of Spanish farmersand now the transporters, is expanding and is directly affecting the interests of consumers, who are threatened by a possible “product shortage.” “There may be a significant lack of products”Manuel Hernández, transporter and president of the National Transport Platform, warned on Telecinco, who also called for an indefinite strike in his sector for next February 10.

While the main strike organizations take over of the demonstrations to plan the paralysis of cities such as Ciudad Real, Huesca, Salamanca and Ávila, the threats linked to the Blockade of the country’s logistics centers expands towards the main ports.

The unrest of the countryside, a minority, is going from roadblocks to blocking ports like that of Castellón, Málaga and Algeciras. A scenario that worsens the conflict and that, if carried out in a majority way by organizations as in 2022, “the impact on the economic activity of Spain could be huge,” he told this newspaper. Cristian Castillo Gutierrezprofessor of Economics and Business Studies at the UOC, researcher at the SUMAT group, and expert in the areas of logistics, production and operations.

Economic impact and look towards 2022

According to the expert, this scenario would force the Ministry of the Interior to reinforce its security in the ports and ensure that its activity is maintained. “In this sense, I do not consider that it produces a shortage, but it does delays that can complicate the circulation of goods. These demonstrations would probably try to hinder the entry and exit of land transport to the ports,” Castillo pointed out.

“In 2022, with the general transport strike, in which there were majority unions, the points with the most logistical tension were the ports. This caused some of the merchandise that was stranded awaiting collection, causing a collapse in port capacity, delaying the arrival of new merchandise. In the case of that perishable merchandise, because it was not distributed on time, it had to end up being destroyed,” the specialist recalled.

The cost of the 2022 strike for supermarkets

“All of this mentioned above, added to the costs of storage and electricity, can help us understand What could happen depending on how these strikes evolve and, especially, if the majority transport unions are added, which at the moment is not what it seems,” he clarified.

Along these lines, the expert has pointed out that the important thing is to take into account that, for the moment, the minority transport union has been added to the strike and this can help “minimize the impact.” Even so, “prolonged demonstrations, especially those that occur in an unforeseen and uninformed manner, can cause tensions in the supply chain.

To the above, Castillo has added that the 2022 strike, in which only the transport union was involved, It cost about 130 million euros per day only to the food distribution sector (supermarkets).


Source link