Britain signs a ferry freight contract to ensure normal trade after Brexit transition

As the Brexit transition period is coming to an end, the British government announced that it has taken measures to ensure that key freight operations continue to operate in 2021, regardless of the outcome of the current negotiations with the EU. Europe has reached an agreement with four major ferry companies to maintain the flow of goods from the European Union after the transition period ends on December 31.

　　The British Ministry of Transport announced that it has signed 6-month contracts with Brittany Ferry Company, DFDS Company, P&O Ferry Company and Stena Company worth more than US$100 million. They pointed out that if there is no need to conclude a contract, the cost of terminating the contract will be an unspecified part of the total contract amount. This has become the main point of contention for ferry services after Brexit last time.

　　 These contracts are concentrated on 9 basic routes, which serve 8 ports. The Ministry of Transport stated that these routes are unlikely to be disrupted. The ports included in the contract are Felixstowe, Harwich, Hull, New Haven, Poole, Portsmouth, Teesport and Tilbury. The Dover and Foxton routes are considered particularly important for trade between the UK and the EU.

　　 Transport Minister Grant Shapps said when announcing the contract: "With the end of the transition period, we will take necessary measures to ensure the smooth and smooth flow of goods.". "Ensure that these contracts are signed, regardless of the outcome of the negotiations, from the moment we leave the EU, life-saving medical supplies and other key items can continue to enter the UK."

　　 This is not the first time that the UK has contracted transportation services in the long-term Brexit struggle. At the end of 2018, the British government signed similar contracts with the British Ministry of Defence, Brittany Ferry Company and shipping company to prepare for a "no-deal Brexit". These $140 million contracts are designed to address potential shipping bottlenecks, with emphasis on Portsmouth, Plymouth, Ramsgate and Poole.

　　 Attempts to sign contracts to ensure the circulation of goods have been widely criticized. Although the company has no ships and no experience in operating freight ferry services, ocean freight still accounts for 15% of the contract. After announcing a no-deal Brexit, the government eventually cancelled these contracts and the matter eventually went to court. According to various media reports, these settlements eventually cost more than US$100 million.

　　 For this round of contracts, the government emphasized that it used the 2019 framework aimed at improving the flow of goods. All contracts are handed over to experienced operators. They pointed out that the supply chain was interrupted by the COVID-19 crisis, but these contracts will ensure that “life-saving medical supplies and other key commodities can continue to enter the UK when the transition period for exiting the EU expires on December 31.