One of the main topics of news at the present time is the possibility of a ‘No Deal’ Brexit next year. The possibilty looks more likely by the day as the Government and The EU fail to come to an agreement. So, how would a ‘No Deal’ Brexit be likely to affect the shipping industry?
The prospect of a ‘No Deal’ Brexit has caused some very alarmist and scaremongering predictions, many of which would appear to be unnecessary and are often the utterings of pro EU politicians. Obviously, it is impossible at this stage to know preciseley what will happen, but there are alarmists in the shipping industry as well as in the bigger corporate world.
Maritime UK chairman David Dingle said, “The industry is increasingly worried about the rising costs and disruptions that could affect their supply chains, especially at ports, in the event of a no-deal scenario. Failing to secure a deal will mean delays and disruption at ports like Dover, Holyhead and Portsmouth, but equally at EU ports, including Zeebrugge, Calais and Dublin.”
Then there is the possibility that some of the major container lines will stop calling at UK ports and sail directly to the major container ports in the EU such as Rotterdam and Hamburg and our goods will then have to be trans-shipped to the UK.
I feel that this scenario is unlikely as the volume of goods imported into the UK, particularly from the Far East, is huge and commercially warrants these large container ships to deliver directly to us.
Also, once we are are out of the EU and can negotiate new trade agreements with countries such as Canada, India and the South American nations, there could be an upturn in exports which will make our economy stronger.
So, stop the scaremongering and let’s get on with new and exciting trade agreements without the EU’s red tape and self-interest.
Finally, I would like to wish all of our readers a Very Happy Christmas