NEW

Ports chaos has shut Honda motor factory due to parts shortage.

Honda confirmed to employees production “will not run on Wednesday 9 December due to transport-related parts delays”... - situation monitored with view to restart production as soon as possible

number of my business contacts very concerned about this perfect storm on logistics of Covid, Christmas, Brexit stockpiling, & new set of trading arrangements/ systems, still yet to be confirmed, amid difficult pandemic working conditions etc...

The ports people told me yesterday that the core original problem at Felixstowe is being worked through and had been more than halved - but businesses now saying multiple supply chains being hit with delays...

expert freight forwarder told me started to hire a load of planes because disruption in sea freight into UK means “product unable to land, cargo price hikes and severe shortage of hauliers and warehouse space” causing “ridiculous container rate hikes” - five or even eight fold...

Retailer confirms to me that container rates to UK have spiked up to $6-7k as shippers rip up contracts... others use a figure of a 27% weekly increase in prices, and then extra congestion fees for products - from food, clothing, furniture & car parts, stuck on dockside

Told at start a Covid story - Massive influx of PPE, but also logistics generally upended by massive impact on trade.

But here also been a mass late move into Brexit stockpiling to avoid hassle/tariffs., esp companies that used existing stockpiles for Covid.

All at same time

Gove’s point re this - its not anticipated Brexit hold-ups in cross Channel roll on roll off freight - which is correct - container terminals/ more global problem..But it makes starting point for new trade arrangements even trickier, & problem added to by Brexit stockpiling

Indeed difference between the recently leaked Cabinet Office Reasonable Worst Case scenario document and the Yellowhammer one a year ago, is about these interactions between Covid & Brexit...
- Covid used up companies Brexit stockpiles
- container terminals were an alternative