British government terminates contract

British government terminates contract

11-02-2019 10:00:00

The British government has terminated a “no-deal” agreement with Seaborne Freight. The deal has been canceled because the Irish shipping company Arklow Shipping, who were suppose to supply the ships that were part of the agreement, decided to pull out of the deal. Seaborne Freight does not own their own ships and therefore needed a partner in order to hold up their end of the bargain.

"Due to Seaborne Freight's ship supplier Arklow Shipping’s decision to pull out of the deal it is clear that Seaborne cannot meet the contractual requirements issued by the British government. The government is already communicating with numerous companies to ensure additional freight capacity, amongst these via the port of Ramsgate, in case of a no-deal Brexit, "A spokesman from the British government says to The Guardian.

Seaborne Freight received the contract back in January with the goal of re-establishing the Ramsgate - The Ostend ferry connection to Europe, in hopes that it would take away some of the expected traffic at Dover's port in case of Britain's leaves the EU on a “no-deal” note.

The political pressure against the British government and not least Minister for Transport is starting to build. Critics believe that the government waited to long to secure decent ferry connections with enough capacity, in case of Britain leaves the EU without a deal being made.

On top of this, the Minister is being blamed for the fact that most of the contracts have been made with non-UK shipping companies. Seaborne was one of three companies that received contracts for a total of 108 million pounds. One of the other companies was DFDS.

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