Brexit---Huge numbers of containers rush to get in the UK to avoid the extra duty after 1st January 2021 .The spot rate offered by the few carriers who still running the UK route from Asia is around USD 10,000 per container. 

Brexit–The on-again, off-again relationship

The new dateline of Brexit negotiation is extended to 31st December 2020 from 13th December 2020 but the agreement is still needed “go the extra mile” to reach the compromise between the UK and the EU. If there is still no agreement at that time, the UK can only leave the EU without any deal.

It seems very hard to get the balance point for each other in time due to several reasons but the impact for shipping industry is shown already for a while. Huge numbers of containers rush to get in the UK to avoid the extra duty after 1st January 2021 but the capability of ports in the UK to handle the vessels and containers is far behind the current demand. It leads the serious port congestion – hundreds of vessels waiting to call at the UK ports and thousands of containers stock in the terminal. Even by ferries or through the tunnel is the same crowded.

Most of the major shipping lines stop accepting the containers to the UK destinations from the rest of the world. The spot rate offered by the few carriers who still running the UK route from Asia is around USD 10,000 per container. The rate is expected to raise again in January even the arrival time will be long after the Brexit dateline because of this abnormal situation in the UK ports continuously. 

Although the EU will continue to do its utmost to reach a mutually beneficial agreement with the UK, there are still major uncertainties as to whether the agreement will be in place on 1st January 2021. Without doubts, both parties will try their best to keep the traffic unimpeded between the continental and the UK after the Brexit dateline to maintain the people’s normal life.

Will there be a sequel to this drama? Let’s wait and see...

Photo 1：Alexander Andrews，Link：Unsplash

Photo 2：Francisco De Nova，Link：Unsplash