Analysis: Felixstowe, London Gateway, MSC & Gemini – musical chairs in UK ports
MSC’s beady eye on Felixstowe?
UPS: MULTI-MILLION PENALTY FOR UNFAIR EARNINGS DISCLOSUREWTC: PUNISHEDVW: UNDER PRESSUREKNIN: APAC LEADERSHIP WATCHZIM: TAKING PROFITPEP: MINOR HOLDINGS CONSOLIDATIONDHL: GREEN DEALBA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING
UPS: MULTI-MILLION PENALTY FOR UNFAIR EARNINGS DISCLOSUREWTC: PUNISHEDVW: UNDER PRESSUREKNIN: APAC LEADERSHIP WATCHZIM: TAKING PROFITPEP: MINOR HOLDINGS CONSOLIDATIONDHL: GREEN DEALBA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING
Stakeholders are calling on the government to change migration rules that have caused a “significant” rise in UK fines for truck drivers and have “made haulage operators feel like the scapegoat”.
Last year, the UK Government changed the rules and penalties relating to vehicles carrying illegal entrants to the UK. The new laws put more of a personal onus on hauliers to take measures securing their vehicle to prevent clandestine entrants from entering the UK.
But according to senior associate solicitor at legal firm Aaron & Partners, Costas Nicolaou, many operators feel like they are being “scapegoated” by a government looking to “be visible and demonstrate to the electorate that it’s dealing with the problem”.
He said: “The Carriers’ Liability (Amendment) Regulations 2023 are another measure to ‘pass the buck to the truck’ for illegal immigrants, with the stakes getting ever higher in the wake of the migrant crisis.”
If hauliers are found to not properly secure their vehicles, they can be fined up to £6,000 ($7,390) per responsible person, meaning the owner and driver. These fines can be issued even if no clandestine entrant has been found on the truck.
If a stowaway is found on board, a haulier can be fined up to £10,000 per person responsible, even if it was against their knowledge.
And Transport Intelligence (Ti) noted: “Considering the very thin margins in the sector, every cost increase represents another risk to profit erosion.”
The Loadstar previously reported that UK haulage firms are already facing increasing operational costs and reduced customer demand in the wake of inflation. This has led to a record number of haulage companies entering insolvency.
A spokesperson from The IRU told The Loadstar: “IRU challenges the UK approach of ‘guilty until proven innocent’ and the lack of legal certainty in the UK for driver and companies in cases where unwillingly and unknowingly stowaways have been found on board a vehicle.
“It is unacceptable that in cases where drivers and companies have taken all measures to avoid stowaways and can provide adequate proof thereof, they are still considered liable and can still face huge penalties.”
The IRU also challenged penalties for vehicles not having been properly secured, even in cases where no stowaways are found on board.
And Logistics UK told The Loadstar: “Drivers are not immigration officers and do not have the extensive equipment available to government staff on both sides of the border to detect the presence of people on board their vehicles.”
The IRU spokesperson concluded: “The UK Government must understand that in most cases drivers and transport companies are as much a target and victim of organised crime as the clandestine entrants. IRU has already addressed its concerns to the UK government and will continue to raise issues and explore solutions with UK authorities.”
Similarly, the Road Haulage Association (RHA) called on the government to amend its ruling. It said: “Government must be mindful of the industry’s on the ground experience when dealing with an ever-changing situation. Drivers and businesses who have followed the rules and made every attempt to do their part in border security should not be unfairly punished.”
Mr Nicolaou advised that while objecting to and appealing these penalties before the courts is not straightforward, to protect their business, finances, reputation, and, above all, their already slim margins, “logistics companies need to ensure that these are being challenged wherever possible”.
Comment on this article