Import cargo from the United Kingdom (UK) to Southern Ireland has declined 50% in the first month since the free trade agreement between the UK and the European Union was implemented according to the Freight Transport Association Ireland (FTAI).
[s2If is_user_logged_in()]Speaking to Container News today Aidan Flynn, general manager at FTAI said that the lack of preparedness from the UK exporters and in particular the groupage industry, where shippers pack containers with many different cargoes, have been hit hard.
“UK exports are down around 50%,” said Flynn, “With the imports from the UK at around £20 billion (US$27.36 billion) a year, but our biggest partner in Europe now is France and that market was £9 billion (US$12.31 billion) before Brexit.”
Flynn pointed out that if a haulier had a full container load of a particular cargo, toilet paper for example, he would need to complete an import/export document and a safety and security declaration for that cargo, but if the container was handling online orders, there could 2,000 import/export declarations required and the same amount of safety and security documents.
“This situation is causing cargo to be delayed in the UK as shippers struggle with the new documentation necessary, we are particularly struggling with car parts with Hyundai, Toyota, Honda and others producing parts in the UK, but there can be 1,600 products on one and then they need to be itemised, because the rules of origin may mean that some tyres have come from a different source and those tariffs would be different,” explained Flynn.
Delays will ultimately lead to higher costs and those costs will be passed on to the consumer, but the consumer’s major difficulty in Ireland is that the goods they used to order from Amazon in the UK are now being ordered from Europe and that can take up to two weeks to arrive.
The shambolic systems and the fact that the trade deal between the UK and Ireland was very late in the day has meant that many UK companies were unprepared, “And we knew that if the British were not prepared it would affect Ireland,” said Flynn.
Demand for direct services to Europe from Ireland has increased as a result of the Brexit difficulties with some 30 sailings a week out of Rosslare to Cherbourg, whereas prior to Brexit there were only 10, while the Luxembourg based unaccompanied freight specialist CLdN, which operates freight ferries as well as offering intermodal transport, has also increased its direct services to Zeebrugge and Rotterdam out of Dublin and Cork, whereas the sailings from Dublin to the UK have significantly diminished, said the FTAI.
“When the discussions were happening the problem remained theoretical, but the reality has changed that, it’s just not simple to move cargo through the UK anymore,” added Flynn.
According to the FTAI, it could take months for the goods to start moving again, but because of the geographic location of Ireland to the UK, importers and exporters need a balanced approach, ultimately. “We need time for freight to find its way,” said Flynn.
Meanwhile, ferry operators have been increasing their direct services to the European mainland taking advantage of the increased demand.
Brittany Ferries added the Cap Finistère ferry to its services operating directly out of Rosslare Europort to Cherbourg while the operator also offers services to Bilbao in Northern Spain. And Stena Ro-Ro added an extra vessel to its services doubling its sailings to Cherbourg, while DFDS launched a service to Dunkirk in France with six sailings a week.
Nick Savvides
Managing Editor[/s2If]
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