Maritime UK, an industry body for the British maritime sector, has urged the UK government and European Union to extend the Article 50 process if a deal is not agreed by October. The Baltic Exchange is a member of Maritime UK. 

According to a recent survey commissioned by Maritime UK, 66 per cent of UK maritime business leaders think a ‘no-deal’ scenario is now likely, with just half of them saying that they have made preparations for such an outcome.

Maritime UK, whose members facilitate 95% of UK trade, is calling on all parties to get behind the Prime Minister’s Chequers accord, and for the European Union in turn to show pragmatism.

With half of business leaders questioned having not made preparations for a no deal, Maritime UK believes there is not enough time to prepare for crashing out of the EU.

Of the 507 business leaders polled, more than half (58 per cent) supported the agreement reached by the Cabinet at the recent Chequers summit, which includes a new UK-EU ‘free trade area’ and a commitment to replacing the free movement of people with a ‘mobility framework’.

The survey found that the major no-deal concerns for business leaders are increased costs and supply chain disruption, including delays at ports.

Welcoming the survey’s publication, David Dingle, Chairman of Maritime UK, said:

“Business leaders from across the economy support the maritime sector’s call for a pragmatic Brexit deal that enables frictionless trade. We cannot accept that no deal is better than any deal. A worrying number of business leaders from all sectors and parts of the country now believe a ‘no deal’ is the most likely outcome. If we fail to agree a deal by October, it is in the interest of both the UK and EU to extend the Article 50 process.” 

He added:

“Failing to secure a deal will mean delays and disruption at ports like Dover, Holyhead and Portsmouth, but equally at EU ports including Zeebrugge, Calais and Dublin. We urge both sides to recognise an agreement is in everyone’s interest, and to be pragmatic so that a deal may be agreed quickly. The maritime sector welcomed the Chequers accord and the renewed pragmatism it demonstrated. It’s time that Brussels demonstrates that same pragmatism now.”