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Brexit traffic jam: container chaos in British ports drives up prices

2020-12-17T06:46:41.062Z


For weeks, containers have been clogging British ports, and companies are trying to replenish their stocks before possible customs controls. This is expensive for retailers, and consumers need patience - especially before Christmas.


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Containers in the port of Belfast: "The consumers pay the bill"

Photo: 

PAUL FAITH / AFP

Trade associations warn of higher prices and delayed deliveries before Christmas due to chaos in British ports.

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," said Dickinson.

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, however, many companies are also 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.

The toy manufacturers had also warned of delivery problems before Christmas and higher prices.

Container 25 percent more expensive than a week ago

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.

Traders fear that a no-deal Brexit could lead to even greater disabilities.

If there are customs controls for the movement of goods between the EU and Great Britain, there is a risk of truck chaos around the port of Dover.

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Temporary control point is set up in the Northern Irish port city of Larne

Photo: Liam Mcburney / dpa

Transport costs are already skyrocketing: in some cases, containers are being charged 25 percent more than a week before, and ports are also charging congestion fees.

Companies have already lost hundreds of thousands of pounds.

“These issues urgently need to be addressed.

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 more funds so that all ports across the country are ready for Brexit."

Icon: The mirror

apr / dpa

Source: spiegel

All business articles on 2020-12-17

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