Thursday, March 28

A perfect storm in the shopping basket: the transport strike adds shortages to inflation


The transport strike is already noticeable. Especially in the perishable food industries. After several days without approaches and in which the indefinite strike of the carriers continues, there are already supply problems.


The origin. Last December, after the threat of the entire sector to stop, the Government and carriers reached an agreement to lift a strike planned for the most delicate dates of Christmas. After achieving historic progress, such as passing on the rise in diesel prices to contracts already signed, the strike was lifted.

On March 2, the Government signed the Royal Decree-Law in which these measures were collected, but the disproportionate rise in fuel prices in recent days has again put a sector on the ropes that 85% is made up of small businesses and freelancers. One more fact that has motivated the call for an “indefinite strike” by the Platform for the Defense of the Freight Transport Sector.

first consequences. Although the Platform for the Defense of the Freight Transport Sector does not belong to the National Committee for Road Transport (CNTC), it is demonstrating its convening power. The association represents small truck drivers and their unemployment is already noticeable in some large markets.

Since yesterday, the National Federation of Dairy Industries has confirmed that as of today, Thursday, March 17, “most of the industry” paralyzes its activity. “Factories have seen the supply of the necessary inputs for the production of dairy products interrupted, as well as the transfer of the finished product to the distribution chains, for which the packaging, storage and management capacity of a highly perishable and essential for daily consumption,” they say in a statement. It is in perishable foods that the strike may be most successful in the short term.

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They are not the only ones. In addition to the strike by the dairy industry, there is the Spanish Association of Exporters and Industrialists of Table Olives (Asemesa). The large consumer business associations (ACES, AECOC, ANGED, ASEDAS and FIAB) have asked the Government to act in a situation that is festering and that is causing some shortages in large logistics centers.

Mercabadajoz has reported a 60% decrease in truck drivers and some supermarkets are having problems with the supply of fish. They are having the same problem in Galicia, where there were fewer customers in the auctions and where shipments to Madrid and Barcelona are experiencing the most problems. In Mercabarna they also assure that there has been a 25% decrease in vegetables, in addition to 50% in fish. Mercacordoba is also warning of a lack of fish and assures that they are only receiving 30% of the usual truckers.

The Spanish Federation of Food and Drink Industries also warn of a possible lack of stock. In Asturias, the metal partially stops and Femetal warns that the lack of raw materials may cause total closures starting next week. The automotive industry, which was already experiencing a complicated situation due to the lack of semiconductors, is seeing its situation worsen with the transport strike.

The perfect Storm. Although, at the moment, there is not a general shortage of products, the transport strike deepens the inflationary problem that Spain is experiencing. A week ago, large queues in supermarkets and gas stations, in the face of a constant rise in the price of the shopping basket. In February, prices rose 7.6%, even before the harsher consequences of the war in Ukraine were felt. Logistical problems stemming from this carrier strike may further increase prices and put pressure on consumers to stockpile products.

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a festering conflict. There is no light at the end of the tunnel for conflict. At least for now. The Government does not consider the Goods Transport Sector Defense Platform a valid interlocutor as it is not within the CNTC. They assure that the CNTC does not represent the transport sector and that they will continue the strike until their demands are heard, including 30-day payment and a sanctioning regime for those who fail to comply or the impossibility of working at a loss.

The only statements to date regarding the conflict have been made by Raque Sánchez, Minister of Transport, Mobility and Urban Agenda, who has warned that “greater forcefulness” will be taken against violent pickets. Also yesterday, the Government promised to lower the prices of gasoline, gas and electricity, but it will not be until the end of the month when these measures are implemented.

Image: Paul White/AP

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