- BvL Strike Over Pension Reforms Causes Major Delays.
- Freight and Oil Product Prices Surge Amid Disruptions.
- Pilots’ Union Suspends Strike Until October 24.
Antwerp’s port authority is stepping in to help Flemish pilots and the regional government work out better labour agreements to avoid future disruptions, a senior official confirmed on October 21. This decision comes on the heels of significant delays at Europe’s second-largest port, which has seen its worst congestion in years, reports S&P Global.
Strike Over Pension Reforms
Earlier this month, the backlog at the Belgian port swelled to over 160 ships after the pilots’ union, BvL, launched industrial action in protest of government pension reforms.
“It’s the Flemish government who is in charge of these negotiations and discussions, but we will support and try to find a new way of working,” Port of Antwerp-Bruges CEO Jacques Vandermeiren told Platts on the sidelines of the Global Maritime Forum.
Cost Surge and Market Impact
The recent disruptions have led to a spike in barge freight rates and oil product prices, as traders are grappling with logistical challenges in transporting cargo. For instance, with some barges stuck in Antwerp, the freight rate between Antwerp and Amsterdam surged from Eur3.17 per metric ton on October 8 to Eur4.05 per metric ton by October 21, according to Spotbarge data.
Temporary Suspension of Strike
In a related development, BvL has decided to pause its strike until October 24 as a goodwill gesture during the ongoing negotiations. The union expressed hope that a final agreement can be reached by the end of November.
“Everything is, for the time being, under control,” Vandermeiren said. “So, we will try to solve the pension discussion and a new scheme for the pilots.” “Hopefully, before the end of the year, we’ll have signed a completely new settlement that is reliable for the coming years.”
Congestion Eases, Prices Correct
Recently, congestion at the Port of Antwerp has started to ease, which has resulted in a drop in product prices. On October 20, Platts reported that Eurobob gasoline differentials to November swaps were assessed at $24 per metric ton, a significant decrease from $50.25 per metric ton just four days earlier on October 16.
Port Throughput Performance
From January to September, the Port of Antwerp-Bruges processed 55.9 million metric tons of liquid bulk cargo, with oil products making up 62% of that total.
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Source: S&P Global
