The lack of progress on the future relationship between the EU and the UK creates uncertainty for shipping companies as time for operational preparations post-Brexit becomes increasingly short, seeing as no deal was made between the EU leaders at their meeting Friday. Danish Shipping works with the European industry to help companies prepare for the day of Brexit.
Slow Brexit negotiations is a risk to shipping companies
As Brexit yet again was discussed between the EU’s leaders, the 27 remaining heads of state have agreed that progress has been made, but not enough to start negotiations on a future trade relationship.
The 27 Member States have shown a united front, even as Prime Minister Theresa May has tried to sway countries. There has not been sufficient progress to move on in negotiations and the next assessment of progress has therefore been postponed to December. The delay further shortens the timeline as the UK will have to leave the EU on the night of March 29 2019.
To lower the impact of negative consequences, Danish Shipping works closely with their European counterparts to make sure that shipping companies are prepared for the changes that will happen whatever the outcome of the Brexit negotiations may be.
“As the day of Brexit moves closer without knowing the future trade relationship, it becomes more and more difficult for shipping companies to prepare their commercial operations. Trade agreements require a long process, and this agreement will be no different. Instead of speculating what the relationship will look like, we are working to assist our members to map out and prepare for different scenarios from March 30 2019,” says Casper Andersen, Director EU affairs, Danish Shipping.
For shipping companies, a no deal-scenario will result in cargo waiting for several days for custom clearances, which will in turn cause queues as ports will be a bottleneck between EU and the UK. As a consequence fresh produce risk rotting while waiting for the paper work to go through. Standards on environmental, safety and reporting issues will be unknown from day one as well.
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