Last week, we shared the details on a Port Strike impacting Japanese ports by the National Council of Dockworkers' Unions of Japan (Zenkoku-Kowan) due to the urgent need to secure substantial wage increases and accelerate negotiations on sector-wide labor system reforms. During the negotiations held on Monday, April 28, Japan’s dockworker unions officially notified employers of significant escalations in their ongoing labor action:

• Starting Sunday, May 18, 24-hour strikes will take place every Sunday on an ongoing basis
• Starting Monday, May 19, workers will indefinitely refuse all overtime cargo-handling work, including weekdays

 

The overtime refusal is expected to cause major operational disruptions, especially during weekdays, making the coming weeks a critical phase in the dispute.

 

Japan Port Strike Update: Revised Schedule

• March 30 (Sun): Completed
• April 13 (Sun): Completed
• April 20 (Sun): Completed
• April 26 (Sat): Scheduled → Cancelled
• April 27 (Sun): Completed
• May 11 (Sun): Scheduled
• May 18 (Sun) onward: Strikes every Sunday
• May 19 (Mon) onward: Indefinite refusal of overtime work

The union emphasized its readiness for a protracted fight and its commitment to pressuring employers toward meaningful progress. One of the core demands is to facilitate cost pass-through mechanisms that would enable wage increases. In an April 16 collective bargaining session, the Japan Harbor Transportation Association (JHTA) explained it would formally petition port user organizations to help address the pricing structure—a move the unions welcomed.

The union is also demanding action on:

• The rate gap between domestic feeder cargo and foreign trade cargo handling
• The impact of coal-handling declines due to the decommissioning of coal-fired power plants

Some of these issues involve government policy and structural reforms, indicating that a resolution is unlikely to come quickly. At a union meeting in late March, leadership made clear their intent to pursue wage hikes through broader improvements in port labor conditions. Negotiations are expected to be long-term and complex.

Introduction to the Port Strike

The Japanese port strike has been a major concern for the global logistics industry, particularly in Asia. Over 17,000 dockworkers in Japan have launched nationwide port strikes, affecting key international gateways such as Tokyo, Yokohama, and Osaka. The strike is expected to cause severe supply chain disruptions across Asia and beyond. The national federation of dockworkers’ unions has led the strike action, demanding better working conditions and wage hikes. This widespread industrial action underscores the urgent need for reforms in the sector, as dockworkers push for fairer wages and improved labor conditions.

Terminal Congestion Worsening

As the strikes continue, terminal congestion across Japanese ports has grown increasingly severe, impacting the logistics and shipping of goods. According to reports from major container carriers, the Oi Terminal in Tokyo Port is operating at over 90% yard occupancy, significantly degrading cargo-handling efficiency.

The strike is halting cargo operations, likely leading to significant supply chain disruptions not only in Japan but across Asia.

Yard Occupancy vs. Efficiency:

• 70% range: Normal operations

• 80% range: Reduced handling efficiency

• 90%+ range: Critical congestion; container shifting becomes severely impaired

If the labor actions persist, further delays, vessel schedule disruptions, and even port omissions by container carriers are likely. The next central labor-management negotiation is scheduled for Wednesday, May 14, with preliminary talks planned for May 12 and 13. Stakeholders across the supply chain will be watching closely to see whether substantial progress can be made before the dispute escalates further.

Mitigating the Effects

To mitigate the effects of the strike, logistics teams and shippers can utilize real-time tracking and congestion monitoring tools to stay ahead of disruptions. Rerouting strategies can also be employed to minimize delays and congestion. Additionally, the dockworkers’ unions and the JHTA can work together to reach an agreement, creating a backlog of vessels and cargo in the process. However, with the strike expected to continue, it is essential for logistics teams and shippers to have a contingency plan in place to minimize the impact of the strike. This can include identifying alternative routes, modes of transportation, and communicating with customers and stakeholders about the situation. Proactive measures and flexibility will be key to navigating the ongoing disruptions.

Staying Prepared for Ongoing Strike Actions

Staying prepared for the ongoing strike actions require logistics teams and shippers to be proactive and flexible. This can involve staying up-to-date with the latest developments and confirmed strike dates, as well as having a plan in place to mitigate delays and congestion. By utilizing real-time tracking and congestion monitoring tools, logistics teams and shippers can stay ahead of disruptions and minimize the impact of the strike. Furthermore, having a contingency plan in place can help to reduce the risk of delays and congestion, ensuring that cargo operations continue to run smoothly. With the strike expected to have a significant impact on the Japanese logistics industry, it is essential for logistics teams and shippers to be prepared and proactive in their approach to mitigating the effects of the strike.

To ensure your cargo operations remain seamless during this period of uncertainty, partner with a trusted logistics provider. Contact SGL today to request a quote and discover our tailored solutions designed to keep your supply chain running smoothly. Request a Quote now and take the first step towards proactive logistics management!