UK retailers and food manufacturers demand action on port disruption

The British Retail Consortium (BRC) and the Food and Drink Federation (FDF) have called for an urgent inquiry into disruption at UK ports and across the shipping market in the crucial run up to Christmas.

In a letter to Lilian Greenwood MP, Chair of the Commons Transport Select Committee, and Angus Brendan MacNeil MP, Chair of the Commons International Trade Committee, they blame this on the impact of Covid-19 on global shipping schedules and the shipping workforce along with a shortage of empty containers.

As a result, retailers face “major challenges in building up stock for the Christmas period and for the end of the Brexit transition period at the end of December.”

The letter points out that “container spot rates have jumped considerably – in one instance, by 170% from this time last year. Others have noted week-on-week cost rises of 25%. In addition, congestion charges are being levied by carriers for imports into Felixstowe and Southampton.”

It adds: “Food manufacturers now face additional cost to source key inputs elsewhere, whilst also losing sales due to missed retail promotions in the run up to a key seasonal period – one company has lost over £1 million in sales due to the delays.”

The BRC previously wrote to the Secretary of State for Transport on 20th November to call for action. At the behest of the BRC and other organisations, the government temporarily relaxed the enforcement of EU drivers’ hours rules until 31st December to help delivery of essential items and reduce the backlog in some ports.

The latest letter requests the Transport Select Committee holds a joint inquiry with the Commons International Trade Committee on Port Disruption and Functioning of the Shipping Market.

Helen Dickinson, Chief Executive at the British Retail Consortium, says: “The lead up to Christmas is the most important time of year for retailers; ordinarily accounting for up a fifth of the entire year’s sales and generating a large part of annual revenues.”

“After a tremendously challenging 2020, many firms’ cashflows are under severe pressure, and so businesses are in no position to absorb these additional shipping costs.”

“As a result, consumers will pay the final price. Christmas orders could be delayed, and retailers might be left with no option but to increase product prices. These issues must be addressed urgently; an inquiry would provide the scrutiny needed to help get our ports flowing freely again.”