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DFDS UK-Europe Trade Continues To Grow Despite Brexit

11th February 2018
DFDS ro-ro freighter Ark Dania which operates a UK-mainland Europe service: Immingham (Humber estuary)-Esbjerg (Denmark). AFLOAT.ie adds the giant Danish operator in 2014 closed the Harwich-Esbjerg route, marking the last direct 'passenger' UK-Scandinavian service, though as previously reported on Afloat, P&O Ferries are considering new opportunities to revive a North Sea link given the background of Brexit. DFDS ro-ro freighter Ark Dania which operates a UK-mainland Europe service: Immingham (Humber estuary)-Esbjerg (Denmark). AFLOAT.ie adds the giant Danish operator in 2014 closed the Harwich-Esbjerg route, marking the last direct 'passenger' UK-Scandinavian service, though as previously reported on Afloat, P&O Ferries are considering new opportunities to revive a North Sea link given the background of Brexit. Photo: DFDS Shipping & Logistics

#FerryNews - Danish shipping giant, DFDS has just reported another record result for 2017, the year followed the 150th anniversary of the shipping company established in December 1866. 

The operating profit according to DFDS was DKK 2.7 billion. The record figure by the Copenhagen based private shipping and logistics operator is derived from among other things on the continuing positive development in volumes on the company’s ten freight routes across the North Sea linking the UK-mainland Europe. 

Afloat adds the final 'passenger' UK-Scandinavia service closed in 2014 in advance primarily due to EU sulphur rules introduced in 2015.

Commenting on the figures,Niels Smedegaard, CEO & President, DFDS “Overall, North Sea freight volumes grew by 7% in 2017. In spite of the Brexit issue, and the delayed Brexit agreement between the UK and EU, we see that the UK’s economy is still growing, albeit at a slower pace. According to the UK government’s official prognosis, growth is expected to continue at just over 1 per cent in 2018. At the moment, we even see an increasing growth in British exports, which also contributes positively to our developments on our ten North Sea routes”

To accommodate the expected volume growth over the coming years, DFDS has ordered four new mega ships with a capacity of 475 trailers each for the North Sea traffic. The ships will be delivered from 2019 and onwards from the Jinling Shipyard in China.

The positive development in North sea volumes is also underpinned by some shortage in drivers as trips to UK are not as attractive as they used to be due to the fall of the pound in the wake of the Brexit vote. This has resulted in some freight forwarders changing from using trucks with drivers to just sending unaccompanied trailers on DFDS’ freight-only ships.

“In spite of the challenges Brexit may lead to over the coming years, we can also see opportunities for providing our customers with new, valuable, customs clearance services after Brexit, should customs clearance become necessary. We are located in the ports and have experience with this from our UK to Norway service,” added Niels Smedegaard.

 

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