UK ports on course for worst year in almost 40 years

The United Kingdom's exit from the European Union and worldwide disruptions caused by the pandemic are some of the factors blamed for dragging down trade at Britain's port. Cargo volumes are at the lowest level in almost 40 years.

Research carried out by Drewry maritime advisers for the UK Major Ports Group－a trade association representing 40 of the nation's biggest ports－found that British terminals handled 450 million metric tons of cargo last year, which was down by 13.5 percent on 2019's total, and the smallest volume since 1983.

" (The) shocks of the pandemic have compounded long-term structural change, such as the shift from oil and the impact of decarbonization on the UK economy," said Tim Morris, chief executive of UK Major Ports Group, to the Financial Times.

He said the multiple impediments made 2021 a "challenging year".

Ironically, the report noted a "bounce back" in demand for some consumer goods and building materials that followed the end of the country's first lockdown did not boost volumes by as much as it was hoped because supply chain issues caused by a shortage of truck drivers led to congestion at some ports.

The report also stated the challenges created by additional paperwork and taxes resulting from Brexit and triggered by the pandemic were compounded by a fall in demand for North Sea oil because of a shift away from fossil fuels.

North Sea oil is a key component of UK trade quantities and traditionally accounts for around a third of port volumes.

The report stated that lockdowns led to a sharp fall in travel, and therefore less demand for oil, but fears about global warming that are causing a long-term shift away from fossil fuels will continue to dent oil cargo volumes.

Cargo volumes

It said overall cargo volumes should begin to recover in the coming months, but because of the move away from fossil fuels, it will not return to pre-pandemic levels until 2026.

Royal Dutch Shell announced last week it was pulling out of the Cambo oilfield project in the North Sea, which will add to the sector's decline.

The BBC reported that demand for oil in the UK has been falling since 2005.

Most UK ports are privately owned, reported The Guardian. In addition to grappling with sharp falls in cargo volumes, ports must invest in low-carbon infrastructure to move from diesel ships to vessels powered by electricity.

Industry publication Seatrade Maritime News quoted Ben Abraham, CEO of global marine business with insurance brokers Willis Towers Watson, as saying that the sector will also need to transition to new technologies, defend against cyberattacks, and deal with a shifting geopolitical situation in the years to come.