French ports are anticipating further strike action in March following unsuccessful walkouts from February 26th to 28th. These previous strikes, protesting the country’s pension reforms, did not result in any concessions. The upcoming disruptions pose a threat to oil logistics, particularly in the southern region of France, reports S&P Global.
Several Walkouts
French port and dock workers, represented by the CGT union, conducted staff walkouts at several ports (Fos-sur-Mer, Le Havre, Saint-Nazaire, Rouen, Marseille, and Bordeaux) between February 26 and 28, disrupting crude oil imports and fuel shipments.
Further strikes are planned for March, including eight days of four-hour work stoppages and a 72-hour strike from March 18 to 20.
These protests are ongoing and escalating due to the workers’ claim that President Macron broke a promise to exempt them from the 2023 pension reforms, which raised the retirement age from 62 to 64. While the union initially believed it had secured an exemption, it now say the government has not honored that commitment.
The CGT reports a lack of engagement from the government and has scheduled a meeting on March 25 to discuss further action in April.
The MEDEF union warns that these strikes could severely disrupt supply chains, projecting a 25% drop in port turnover for February.
Oil Deliveries Impacted
The French port strikes starting February 26th appear to have impacted crude oil deliveries, primarily affecting imports through Southern French ports. France has 12 oil-receiving ports; Le Havre, Marseille, and Saint-Nazaire are the most significant.
S&P Global Commodities at Sea data indicates crude deliveries to these three ports for the week ending February 28th were down to 425,000 b/d, compared to the usual 800,000-900,000 b/d. This drop was likely offset by higher deliveries the previous week (1.4 million b/d) and a strong January import average (over 1 million b/d).
Refined product exports from Southern France seemed largely unaffected, even increasing slightly. However, LPG exports from Lavera, a Petroineos refinery and petrochemical facility, were reportedly suspended due to the strikes, contributing to a tighter butane market in the Mediterranean. Petroineos was unavailable for comment.
The Rhone Energies Fos-sur-Mer refinery was resuming full operations after previous weather-related disruptions. The TotalEnergies La Mede biorefinery appeared to be operating normally.
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Source: S&P Global
