Thursday 17th December 2020
Brexit and Corona drive up costs
British ports are falling into chaos
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For weeks, containers have been clogging the ports on the British coast – the fault is the Corona crisis and Brexit preparations. Associations complain: the delays cost a lot of money – and in the end it would have to be paid by the consumer.
Because of the chaos in the British ports, trade associations are warning of higher prices and delayed deliveries before Christmas. After a challenging year, the companies are not in a position to offset higher delivery costs, said the head of the BRC trade association, Helen Dickinson. “The consumer pays the bill.” Christmas packages could be delayed and retailers had no choice but to raise prices.
Together with the Association of Food and Beverage Manufacturers, the BRC called on Parliament to investigate the situation. At the British ports such as the important container port Felixstowe on the North Sea and Southampton on the English Channel, the containers have been accumulating for weeks. The reason is, on the one hand, delays due to the corona crisis. On the other hand, many companies are trying to replenish their stocks before the end of the Brexit transition phase on December 31. There are long truck traffic jams on the motorways.
Ports charge congestion charges
The toy manufacturers had also warned of delivery problems before Christmas and higher prices. Dealers would find it difficult to build up their inventories for the Christmas season and for the end of the Brexit transition period, according to the associations. Some shipments would be diverted to other ports. “However, some delays are inevitable.” After the Brexit transition period, the pressure on the British ports will increase even further.
In addition, the transport costs are skyrocketing: in some cases, containers are being charged 25 percent more than a week earlier, and ports are also charging congestion fees. Companies have already lost hundreds of thousands of pounds. “These issues need to be addressed urgently. An investigation would provide the necessary controls to allow our ports to flow freely again,” said BRC chief Dickinson. Meanwhile, the port association BPA demanded more money to ensure the necessary border infrastructure in good time. “This infrastructure is needed regardless of whether there is a Brexit trade pact or not,” said BPA boss Richard Ballantyne. “We urge the government to provide further funding so that all ports across the country are ready for Brexit.”
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