Supply chains could be hit if P&O ferry disruption lasts weeks

Reading, UK: Cold Chain Federation chief executive Shane Brennan says the situation is “calm” following P&O’s sacking of 800 crew but warns that it could turn problematic if the disruption lasts for weeks.

Brennan’s comments came after P&O informed 800 staff they were being sacked to be replaced with cheaper agency workers. Last week, when P&O suspended their ferries, there were “minor delays” of a few hours, said Brennan.

Speaking on BBC Radio 5’s Today programme, Brennan said: ““The situation at the moment is calm. I guess our concern would be if these days (of disruption) become weeks – at that point businesses will have to make some decisions about how they put contingencies in place and re-route some of their supplies.”

Brennan dismissed concerns about shortages in stores. “No, we absolutely don’t expect that. Businesses are used to these sorts of disruption for a few days – for example in cases of bad weather – so are pretty resilient.“

He said that companies that use the Irish sea routes, particularly out of Scotland and Northern Ireland, might face more challenges than those using the Dover-Calais route because there are fewer options available.

“Supermarkets in particular tend to rely on being able to send stuff from the UK mainland into Northern Ireland via the Northern Irish ports which is very P&O reliant,” said Brennan.

RHA director for Scotland and Northern Ireland, Martin Reid, told BBC Radio Scotland: ”Just dropping this onto the industry at short notice has not been ideal. It is a difficult time for the freight industry and this has not helped at all.”

He said that the lack of notice given by P&O meant that hauliers had to quickly change their paperwork, find slots with other ferry companies and sort out different routes.