Risk of another US port worker strike looming threat for exporters

Last week, trade uncertainties mounted as hostilities in West Asia escalated, and port workers in the south-east and east coasts of the United States (US) went on strike. Towards the weekend, the striking workers decided to get back to work easing the anxieties of Indian exporters but the situation in West Asia remained tense, although there were slim hopes that the main combatants would step back from the brink.

- T N C RAJAGOPALAN

Unlike the West Asia crisis that has the potential to hurt the trading interests of all the countries more or less equally, any disruption in the port operations on the east coast of the US has the potential to hurt India more than its competitors in East Asia. The reason is that the exporters in East Asia have a direct sea route to the west coast of the US through the Pacific from where goods can be moved to any part of that country through rail or road. For India, however, that is not a viable option because of greater distance and consequently greater freight via the Pacific.