Industries call on MPs to hold port delays inquiry

Britain's retailers and food manufacturers have asked MPs to hold an inquiry into disruption of ports and shipping in the important pre-Christmas trading period.

Trade groups said businesses had suffered higher costs, disruption and lost sales because of missed deadlines caused by logjams. A food manufacturer has lost more than £1m in sales because of delays, they said.

The British Retail Consortium and Food and Drink Federation have written to the chairs of Parliament's transport and international trade committees requesting an urgent joint inquiry. The groups said the investigation would give businesses the chance to describe the impact on their operations and help plan to relieve pressure.

Ports such as Felixstowe have not been able to handle the volume of goods arriving because their processes have been slowed by Covid-19 restrictions. Businesses have been competing to replenish stocks after lockdowns and build stockpiles before the end of the Brexit transition in the busy period before Christmas.

Tim Rycroft, chief operating officer of the FDF, said: "Food and drink manufacturers are extremely concerned about the delays we are witnessing at the ports. In some cases, it is directly impacting on the ability of businesses to build up stockpiles of products and ingredients ahead of the end of the transition period."

Ikea has suffered stock shortages because of the delays and Ocado is stockpiling long-life products before the 31 December Brexit deadline. Other smaller businesses have also reported problems including a food manufacturer with large quantities of ginger stuck at Zeebrugge.

The trade groups said greater disruption was likely in early 2021 after the Brexit transition period ends. If there is no deal between the UK and the EU chaos is possible at ports and even with a deal delays are likely, experts have warned.

Helen Dickinson, chief executive of the BRC, said: "Many firms’ cashflows are under severe pressure, and so businesses are in no position to absorb these additional shipping costs. Christmas orders could be delayed, and retailers might be left with no option but to increase product prices."