The DFDS Q3 report shows strong growth in the North Sea transport market. Volumes on our North Sea route network grew by 7.9% from Q3 2016 to Q3 2017.
“We are very pleased about this development as the Brexit vote in June 2016 caused some concern among investors and exporters about the EU/UK transport market, the UK economy and trade in general,” says Niels Smedegaard, CEO of DFDS A/S.
In Q3, UK import volumes from the EU increased by 4% compared to Q3 2016. “However, it is quite interesting that Britain's exports to the EU are gaining momentum with a growth of more than 8%. This is due to a 15% drop in the pound's value. The weak pound seems to have boosted the competitiveness of British industry enough to stimulate growth in UK exports to the EU from the beginning of 2017 – half a year after the Brexit vote in June 2016,” says Niels Smedegaard.
The recent trade report from the UK government shows that UK trade with the EU grew, whereas trade with non-EU countries saw a drop. “This reflects that the strong trading relations between the UK and the EU are unchanged and will most likely remain so until a new trade agreement is introduced in 2019 or more likely in 2021 after a two-year extension.”
“I am confident that the deep trading relations between the UK and the EU will continue after the Brexit deal is in place. Trading can then become cumbersome compared to today. Let’s also remind ourselves that the value of trade between the UK and the EU exceeds DKK three trillion – or this is more than DKK three thousand billion. Therefore, much is at stake for industry, business and the job market. There is also bound to be a strong push in both camps for continuing trading,” he says.
DFDS connects the UK and the EU via nine ferry routes, carrying both passengers and freight, and our company is a substantial part of the transport infrastructure that makes it possible for the British export industry to take advantage of the weak pound and send more goods to continental Europe.
The DFDS Q3 report can be found here