Today, a new report found trade between the UK and the Republic of Ireland has dropped since leaving the EU due to over the top EU red tape.
Trade flows between the UK and ROI has changed significantly since the introduction of EU red tape costing Irish hauliers hundreds of pound more in costs per delivery.
Irish businesses have now decided to divert their goods directly into Europe instead of sending them to the UK for the trade to continue into Europe. That’s has caused passing trade to drop by 29% since Brexit came into force.
Businesses in ROI state that the diversion had to be implemented to avoid any disruption to goods at the border between the UK and EU.
Roll-on Roll-off traffic between ROI and UK has dropped from 84% in 2019 to 67% in 2021.
The report said: “ROI – GB RoRo traffic has declined significantly since January 2021. Volumes in Q1 2021 were distorted by a pre-Brexit stockpile, combined with strict COVID-19 restrictions in January and February. Q2 2021, therefore, provides a more reliable insight into current volumes on ROI – GB routes.”
“In Q2 2021, ROI – GB volumes fell by 20% compared to Q2 2019. For the first 6 months of the year, GB traffic declined by 29% compared to 2019. ROI – GB traffic now accounts 67% of ROI volumes, compared to 84% two years ago.”
The same report then gives us an insight into Northern Ireland. The report states: “In Northern Ireland (NI), RoRo traffic in Q2 2021 was the busiest on record, with traffic rising by 11% when compared Q2 2019. Of the three Northern Ireland RoRo ports, Belfast and Warrenpoint both recorded their busiest ever three-month period, with Larne also recording robust growth.”
Haulage boss Peter Summerton of McCalla Ireland has said this shift which has cost Irish firms hundreds of pounds more and takes a lot longer to ship goods, has happened to avoid complications with the flow of goods.
Irish Hauliers used Britain as their cost-effective “Land Bridge” to send their goods to the EU. But now thats changed.
Mr Summerton explains: “The land bridge was the most cost-effective route between Ireland and the EU, but the cost-benefit analysis has changed because of the risk of products getting stuck in checks as goods travel from Britain into the EU.”
“The ferry companies have opened up new routes, and the supply base has jumped on them.”
“It might take hours longer and cost hundreds of pounds more, but there is no risk of products getting stuck for a day – it de-risks supply chains for suppliers and hauliers.”