Union officials and the bosses from the Port of Felixstowe were last night locked in last-minute discussions to avert strike action.

Last week, Unite announced that workers at the port would walk out for eight days later this month as part of a dispute over pay.

But officials from both sides were deadlocked in arbitration talks which had run through Monday afternoon and into the evening.

In July, a 92% majority of Unite members at the port voted in favour of industrial action.

In talks following the vote, union bosses say Felixstowe Dock and Railway Company failed to improve on their offer of a 7% pay increase to its workers, adding this was "fairly far away" from their demands and an effective pay cut with RPI currently standing at 11.9%.

If a resolution cannot be reached in arbitration talks, workers at the docks crane drivers, machine operators and stevedores will strike for eight days from August 21.

Felixstowe is the UK's largest container port and handles nearly half of the containerised freight entering the country.

Strike action is expected to have a huge impact on the UK's supply chain and could cause severe disruption to international maritime trade.

Business leaders and the government have called for a negotiated solution as a walkout at Felixstowe, the UK's largest port, could see vessels be diverted elsewhere in the UK or Europe.

Bobby Morton, Unite national officer for docks, said: “Strike action will cause huge disruption and will generate massive shockwaves throughout the UK’s supply chain, but this dispute is entirely of the company’s own making.

"It has had every opportunity to make our members a fair offer but has chosen not to do so.

“Felixstowe needs to stop prevaricating and make a pay offer which meets our members’ expectations.”

A spokesman from the Port of Felixstowe said: “The company continues to actively seek a solution that works for all parties and that avoids industrial action.

"We understand our employees’ concerns at the rising cost of living and are determined to do all we can to help whilst continuing to invest in the port’s success.

“The port has not had a strike since 1989 and we are disappointed that the union has served notice of industrial action while talks are ongoing. The port provides secure and well-paid employment and there will be no winners from industrial action.”