As Brexit is coming closer and closer, a recent report revealed that Britain is losing its foothold in the maritime shipping industry because of the strong completion. The country is also no longer offering tax breaks which used to be the biggest motivating factors for tycoon. To top it all, they have also lost the finance business they used to offer for the shipping industry. Shipping companies in the United States with FTL dedicated truckload freight are no longer surprised with the latest news.
For many centuries, the United Kingdom has served as one of the leaders when it comes to shipping with its heart located at the City of London. It has maintained dominance in the marine insurance sector, shipping finance and ship broking among many other types of maritime services.
These areas alone have been giving the economy of Britain around $5.6 billion annually. This is also the reason why over 10,000 residents have been employed in high-skilled positions in the industry. These are figures released by the consultancy firm PwC. There are two major reasons why Britain is losing its hold – one is that the international shipping trade has moved its attention to the Asia region and second is the presence of strong competition. These reasons alone have added pressures on the sector which has been considered as a niche to begin with.
The same report revealed that the United Kingdom failed to maintain their market share in the last two years thereby resulting to a loss of $700 million which should have been added to the country’s economy. The maritime industry is currently valued at $20 billion yearly.
Significant areas that UK used to dominate have been overtaken by international competitors in the past years. Competitors coming from the United States, China and Norway, most especially Singapore, are now fighting dominance as they disrupt major areas. This is why many companies with FTL dedicated truckload freight are forced to give out a reaction in order to come out winners in the sector which is considered to be highly competitive.