Labor Slowdown Creates Long Delays at Rotterdam Container Terminal
T
he labor strife that has plagued ports around the world has spread to Rotterdam with reports of long delays and slowdowns due to a contract dispute at the Hutchison Delta II Terminal. Two labor unions have broken off negotiations and backed away from a tentative agreement threatening to continue their strikes until the operator meets the terms of the tentative agreement.
The terminal which was opened in Rotterdam in 2000 reports it handles up to a quarter of the container volume through the port, which is also the busiest container port in Europe. APM Terminals had owned the facility till selling it in 2021 to the Chinese Hutchison Ports. It is located adjacent to Hutchison’s other terminal and has an annual capacity of 3.3 million TEU.
Shortly after acquiring the terminal, Hutchison entered into a new partnership with MSC’s TIL group with a plan to develop a new automated container terminal. It would have five berths and be one of the most advanced operations in Europe. The companies reported they would open the new facility in 2027.
Workers at the Delta II terminal are represented by two union FNV Havens and CNV. Contract negotiations began in November 2024 and the unions set as one of their key conditions a generous severance package and financial guarantees from Hutchison for the package because according to the unions future employment is in doubt due to the plans for the new Omega terminal.
After months of contentious negotiations, CNV reported on January 20 that it was planning to withdraw from the negotiations. The unions issued an ultimatum and set a January 28 deadline. After a marathon negotiating session lasting 19 hours straight and 29 hours in total, a deal was reported on January 31. It is for a three-year contract running till 2028 with a one-time payment as well as annual 1 or 1.5 percent wage increases and automatic price compensation for inflation. Hutchison agreed to the severance package but the unions demanded written financial guarantees before a February 10-11 membership vote.
The unions contend Hutchison informed them late last week that it needed more time for the financial guarantee. Members rejected the proposed deal and the unions said they were withdrawing from the tentative contract without the guarantee.
Work stopped at the terminal on February 9 and remained suspended till this morning, February 11. Even after the workers went back and the gates were reopened, they were said to be staging slowdowns. Hutchison reported twice during the day it was closing the gates because of the crowds in the terminal. Hutchison confirmed it is experiencing delays in the handling of all modalities and long wait times.
Maersk issued a statement to customers reporting, “a reduced number of moves per hour conducted at the terminal for an unknown duration. Consequently, prolonging the time vessels are operated on and significantly disrupting their normal schedules. To minimize disruptions and protect overall reliability to your supply chains, contingent decisions will be made in the upcoming days.”
Both unions advised members today that they expect this will “be a long-term matter.” CNV said the unions have started preparing actions while FNV predicted there will be more strikes.
Hutchison apologized to shippers for the inconvenience while warning of long wait times at its terminal.