Impact of BREXIT on key stakeholders of the maritime industry in UK

• Main Author: Ching, Claudia Loke Wei
• Other Authors: Lum Kit Meng
• Format: Final Year Project
• Language: English
• Published: 2018
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/75004
• Institution: Nanyang Technological University

The role of UK in the global maritime industry is essential and significant, given its prevalence in the establishment of shipping routes that connects Europe to major regions in the world. With the first trace of trade relations surfacing in 1973, UK also doubles as a connecting network for key economies in the world to conduct trade with the EU. UK’s decision to leave the EU bloc in 2016 has resulted in major operational changes within the UK maritime industry, with effects as far reaching as the Asian economies. This will prompt shipping sectors across UK to respond with the necessary mitigation strategies, as they restructure their operations in the face of BREXIT. The aim of this research paper is to identify the impacts of BREXIT on the UK maritime industry due to its geographical proximity, as well as the intensity of impacts experienced first-hand by the maritime sectors in UK. This paper will focus on presenting an all-rounded view on potential impacts to the major stakeholders in the UK maritime industry, with possible strategies taken by these stakeholders in response to the impacts as a consequence of political decisions made by the UK government. Opinions and insights were gathered from various industry professionals on the degree of these impacts and how these impacts could influence future maritime operations. Analysis of impacts undertaken in this research paper will also aid in evaluation on whether the UK maritime industry is well positioned to tackle the impacts of BREXIT. By and large, UK will generally experience detrimental effects in the near future, but the long term effects of BREXIT still awaits to be seen as UK seeks to establish new trade relations and construct necessary infrastructure in supporting the UK economy post-BREXIT. UK shipping lines and port operators are therefore recommended to look to alternative sources of labour to replace the productivity gap of the EU nationals in the worst case scenario of a hard BREXIT should restrictions in the free movement of labour occur after BREXIT. Permanent establishments in EU states can also serve as a measure for UK firms to circumvent the complex documentation needed for operations across the EU member states.