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Displaying items by tag: UK Trade

#Ports&Shipping - UK trade with continental Europe is likely to be gridlocked when Britain leaves the customs union without a fundamental rethink of English Channel roll-on roll-off (RoRo) services.

Peel Ports [a UK ports group incl. Liverpool] is calling on cargo owners, hauliers and others to look at two potential solutions to inevitable congestion at Dover, learning lessons from a model commonly used for Irish Sea freight and using capacity at ports across the country.

Stephen Carr, Commercial Director at Peel Ports, said: “The supply chain needs certainty, predictability and resilience but we all know about the acute delays and problems that already exist at Dover when there’s the slightest disruption to normal operations. There’s a growing realisation in the whole logistics community that we’re at a tipping point that will force traffic away from the Dover Straits.

“Businesses simply can’t take a huge gamble on what that post-Brexit world might look like, especially those with ‘just-in-time’ processes or that are shipping perishable goods. They need to take steps now to ensure they can deliver goods on time without incurring massive extra costs or compromising on quality. That is perfectly achievable by moving away from the fixation with Dover and by using unaccompanied trailers as many companies do already on the Irish Sea.”

Currently, more than 75% of all RoRo freight from ports on the near continent passes through the Dover Straits. The market is around 4 million units, of which 99% is transported by conventional means of a lorry driver with a cab and trailer.

This is in contrast to Irish Sea freight, where more than 50% of the cargo is only the trailers. In this model, goods are held as contingency stock at the port of entry, with trailers not leaving the port until up to 48 hours after their arrival in some circumstances. Such an approach would provide more time for border checks to take place without the pressure of them needing to be completed during a short sea crossing or at a congested border point.

Stephen Carr added: “Cargo owners and their supply chain providers typically need freight units to leave ports immediately on arrival or just 90 minutes after vessel departure from Calais. But there’s no certainty in the industry that this can be achieved reliably post-Brexit. Companies could look at creating stockpiles in UK warehouses that will allow them to meet business requirements in the event of any delays, but that results in long leases and increased road or rail mileage in diverting to warehouses, increased handling costs, and increased risk of damage to goods. Also, it’s not clear that such warehousing is available in sufficient supply or on flexible terms.

“The modelling that we’ve done shows that routing via ports such as London Medway is just as efficient as the existing options through the Dover Straits, as although the sea leg is longer road miles are reduced. Door to door cargo owners might actually save money, as well as avoiding congestion and reducing carbon emissions. Other benefits include improved productivity for hauliers as drivers do not to waste any time on the sea leg.”

The UK has around 30 major ports, the majority of which handle RoRo cargo. Although not all will have the docking facilities and land required at the moment, many could increase capacity to accommodate goods diverted away from delays at Dover. Peel Ports operates four ports with RoRo capabilities in London Medway (Kent), Liverpool, Clydeport and Heysham (Lancashire).

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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!