Exports port

Sailing between Belfast and GB has been reduced

Northern Irish hauliers warn supply chains across the Irish Sea could grind to a halt within weeks without rapid government intervention.

Most NI supermarkets are filled from distribution centres in GB, while many food products cross the Irish sea numerous times during production.

But the collapse of demand for non-food items heading westbound GB to NI has made it impossible for many hauliers to remain profitable.

They are consequently subsidising trips from their own cash reserves as they strive to keep supply chains moving.

“We can sustain this for no longer than two to three weeks,” said Claire Lappin, transport director at Morgan McLernon, a refrigerated transport provider.

Falling transport rates from GB to NI are exacerbating the problem as hauliers compete to pick up the remaining business.

“There’s a lot of competition and people are cutting rates. It’s just making it very unprofitable,” she said.

But aware of the consequences if they stop, many businesses continue to shoulder the cost.

“They almost feel like there’s a moral obligation on them to keep trading because if they just decide to park up the trucks, they know the impact that could have,” said Seamus Leheny, Northern Ireland policy manager at the Freight Transport Association.

“If they stop moving the goods, it will have a direct impact on what’s available on the supermarket shelves.”

Hauliers operate on tight financial margins, meaning cash reserves have been quickly decimated by the fall in business.

One firm, said Leheny, although regularly filling lorries heading eastbound into GB, can only reach half capacity on return. As a result, it estimates it will lose more than £1m of its cash reserves by the end of May.

“They need to see some light at the end of the tunnel and see some sort of intervention from government. As yet, we haven’t got that.”

It is a sentiment held by firms across the industry. “We are hoping and praying every day that we can get a bit of help,” said Lappin.

The additional threat of shipping line closures is compounding concerns.

Last week, ferry operator Stena Line reduced its sailing between Belfast and GB as a result of the coronavirus pandemic. The loss of passenger trips has made it cheaper to reduce services than sail largely empty ships.

Westminster and Stormont officials are reportedly discussing a support package for operators, but as yet, nothing has been agreed.

“This potential problem needs to be sorted before it becomes a real tangible problem,” said Aodhan Connolly, director at NI Retail Consortium.