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Displaying items by tag: Consequences

#Ports&Shipping - Following the recent publication of the UK Government’s advice on contingency planning for a ‘no deal’ Brexit outcome, the British Ports Association (BPA) has suggested that negotiators have it in their power to agree a deal that would end months of uncertainty regarding the future arrangements at UK and EU borders.

Highlighting the merits of the UK Government’s proposal agreed at Chequers and subsequently set out in the Brexit White Paper in July, the BPA is urging both sides to rally and agree.

According to the BHA's Chief Executive Richard Ballantyne said: “The paper underlines the implications of a ‘no deal’, in terms of trading arrangements at ports. While it is sensible that the Government considers all outcomes we are hopeful that both sides will want to ensure that ports are free flowing on day one.

For parts of the ports industry, namely Roll-on Roll-off port operations, which handle the majority of the UK’s trade with the EU, a ‘no-deal’ could be a serious challenge and lead to significant disruption at the border. The Chequers agreement and the Government’s Brexit White Paper proposals offered a solution to the challenge of possible new customs and borders checks, which to date appears to be the only viable option. We would urge Michel Barnier and his colleagues to seriously consider this proposal. Without agreement the fluidity of tens of thousands of freight vehicles which travel between the UK and the EU on a daily basis is at stake. It is vital that we get this right. Over the last two years we have had productive discussions with the UK Government on Brexit and we do feel that UK officials have crafted a viable plan which with some preparation would work for both sides. This would mean we avoid the significant disruption that may occur at certain ports that are important international gateways for both the UK and the EU.”

Leaving the EU Customs Union and Single Market means that without some form of agreement goods travelling to and from Europe will be subject to new authorisations and other requirements as of March 2019. Included in the UK Government’s ‘no-deal’ advice is that traders will need to undertake new border processes which could be most challenging for freight on lorries travelling through ‘roll-on roll-off’ ferry port gateways. These are ports such as Dover, Holyhead, Immingham and Portsmouth and Ro-Ro ports collectively facilitate the majority of the UK’s EU trade. There will of course be opportunities for IT solutions for customs procedures but these could take time and all those in the logistics chain will need to assess how they will meet the new arrangements.

For most other types of ports handling bulks and containerised cargo, the likely new customs procedures should be relatively straightforward to achieve. However there are still questions around other frontier inspections such as port health standards which are mandated under EU law and without agreement will be difficult to overcome, particularly in respect of the UK’s exports through the EU.

The UK Government’s ‘no-deal’ advisory notices on trading with the EU can be read or downloaded by clicking here.

Afloat adds the Irish Maritime Development Office (IMDO) also has the full document (PDF download) from the EU Commission on preparing for the withdrawal of the UK from the European Union. Also for more related coverage, click here. 

Published in Ports & Shipping

Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!