The record shipping costs are affecting the capacity of British businesses to export to in the European Union, dampening one of the obvious benefits of Brexit A renowned consultancy has cautioned.
The Centre for Economics and Business Research stated that shipping costs for long hauls were nearly tripling compared to prior to the pandemic due to increased container and fuel costs as well as the escalating demands for goods and port disruptions due to the conflict in Ukraine. Within the United States, the Biden administration has fought with the companies in charge of the Pacific shipping industry in the belief that they are increasing prices by 1,000 percent and of fueling inflation.
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The CEBR study found that the cost of shipping short-haul for British firms to countries like Germany have increased from 3.5 percent from the worth of exports to 7.3 percent this year. For longer-haul sea routes to countries outside Europe The increase ranged between 7.5 percent to up to 20.4 percent.
Douglas McWilliams, deputy chairman of the CEBR Douglas McWilliams, CEBR deputy chairman, said “The relatively weak performance of UK exports outside the EU can to a considerable extent be explained by the impact of rising shipping costs and should not be used to deflect the argument that Brexit has affected exports.”
Based on the Office for National Statistics, exports to countries outside of the EU decreased from 54 percent of UK trade during the second half of the year to 48 percent in the months of February and April.
