Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
European freight forwarders are rejecting contracts to take cargo to the UK due to fears of the chaos in Dover may repeat itself after Brexit.
Transporeon, a German software company that monitors real-time data on cargo traffic and rates from more than 100,000 logistics service providers, said that a “dramatic number” of freight forwarders has refused to take cargo to the UK in the last fortnight, despite already agreed contracts.
That’s because companies – which receive and dispatch goods on behalf of other companies – are concerned that they won’t be able to return with the so-called backload or get stuck in queues when trying to leave Britain.
Not Desired
European freight forwarders are already avoiding Britain
Source: Transporeon
France’s cargo rejection rate for Britain almost tripled last week – compared to the third quarter average – and doubled for the Germany-Britain route, as transport demand fell 68% for France -Great Britain and 71% for Germany-Great Britain.
Cargo agents are usually less busy at Christmas – when drivers take vacations and businesses close – and the drop was expected to be more pronounced this year, after companies stocked spare parts, food and production materials in the third quarter. . Still, Oliver Kahrs of Transporeon said that these factors alone did not explain the decline in demand.
“When the trucks got stuck and were unable to cross the channel, it was an extraordinary situation that is not comparable to what we had last year ”, he said. Kahrs attributed the highest rejection rates to chaos in Dover last week and also mentioned concerns that there may be more congestion after the UK leaves the single market and customs union on Thursday.
The UK government is still dealing with Kent’s turmoil, which was triggered by France, blocking traffic between channels for 48 hours to reduce the spread of Covid-19.
On a letter on Tuesday, the trade group Logistics UK warned that the lack of adequate toilets or hot food in the port of Dover during the blockade was a “national constraint”, adding that if the chaos recurs on January 1, “that lack of concern for the driver’s well-being can have an impact on the willingness of EU hauliers to send their drivers to this country. ”