Peru Lost USD 100 Million due to Callao Strike

Peru loses over USD 5 million a day due to the dockworkers’ indefinite strike at Callao, underway for over three weeks, according to Peru’s Association of Exporters (ADEX).

Thus, the accumulated losses so far total in over USD 100 million.

The dockers at Callao port launched a strike on May 13th amid a ongoing dispute with the port’s terminal operator APM Terminals.

Dockworkers’ union Sutramporpc has accused APMT of refusing to negotiate over workers’ demands for fair pay.

According to ADEX, the strike has been caused by the union’s resistance to implementing an electronic system of nomination of workers. Currently, the union is in charge of distributing tasks among its members, without a criterion of efficiency, which increases the penalties for delays in loading and unloading ships for amounts exceeding one million dollars, the association added.

ADEX said that the strike continuation could result in shortage of food supply including  bread, chicken, oil and flour, in addition to other industrial products, thereby increasing prices. The strike is also affecting export figures for the month of May, falling for up to 10 percent.

Currently there are 26 ships waiting to be handled at the North Pier of Callao, which is operated by the company APM Terminals, and 10 more are expected to arrive next week.

Peruvian exports fell 27 percent in April, ADEX data shows.

The association’s president Eduardo Amorrortu believes that the crisis will bottom out soon because such a steep decline in exports is becoming increasingly untenable.

 

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