Transport firms reviewing UK-registered ships ahead of Brexit (updated)

Stolt-Nielsen

30/01/2019 16:48

(Adds further comment, detail)
    By Jonathan Saul
    LONDON, Jan 30 (Reuters) - Sweden's Stena and
Bermuda-registered Stolt-Nielsen  SNI.OL  are reviewing their
UK-registered ships ahead of Britain's departure from the
European Union, the two leading transport companies told Reuters
separately on Wednesday.
    Such commercial decisions could complicate any attempts by
the British government to secure extra space on ships to help
cope with potential disruption to trade if it fails to secure a
negotiated departure from the EU.
    And any possible loss of ships will also be a blow to the
UK's ship registry, which forms part of the country's maritime
services industry. Shipping companies in many flag states pay
corporation tax based on vessel tonnage rather than profit.   
    "In the light of the Brexit process we are considering
whether the UK flag can become a possible issue for us when it
no longer will be an EU flag post the 29th March 2019, but we
have taken no decisions and are reviewing different scenarios,"
said Ian Hampton, chief people & communications officer with
Stena Line.
    "Our fleet needs to be as flexible as possible."
    All commercial ships have to be registered, or flagged with
a country, partly to comply with safety and environmental laws.
    Stena Line is one of Europe's largest ferry operators with a
large part of the business concentrated around the UK. 
    The wider Stena group also has chemical tankers and other
ships registered with the UK flag, shipping data showed. A Stena
Group spokesman said it was also reviewing the other ships in
the UK fleet.      
    A spokeswoman for Stolt-Nielsen, which is listed in Oslo and
whose business includes ships and terminals, said the group was
also examining its UK-registered ships.
    "We are happy with our current arrangements with regards to
our UK-flagged fleet but are reviewing the situation. We have
not reached any decision yet, because there is no clarity on
what kind of Brexit agreement will be in place," the spokeswoman
said. 
    "All businesses will be considering what is best for them
according to their trading model and re-flagging is a
consideration."    
    Earlier this month, British ferry and shipping freight
operator P&O announced it would shift the registration of its UK
vessels to Cyprus ahead of Brexit, in part to keep its tax
arrangements in the bloc.  urn:newsml:reuters.com:*:nL8N1ZM4E6 
    As of Jan 30. 2019, there were 1,306 vessels registered with
the British flag representing just over 16 million gross
tonnage. This was down from 1,317 ships in 2017, 1,328 in 2016,
1,330 in 2015 and 1,327 in 2014, official data showed.  
    Separate data from valuation company VesselsValue showed the
UK flag was ranked 16th in the world, with Panama at no.1 with
6,546 ships and over 207 million gross tonnage.
    Less than two months before the UK is due by law to leave
the EU on March 29, investors are trying to gauge where the
crisis will end up, with options including a disorderly Brexit,
a delay to Brexit, or no Brexit at all.

 (Editing by Alison Williams and David Evans)
 ((jonathan.saul@thomsonreuters.com; + 44 207 542 4357 ; Reuters
Messaging: jonathan.saul.thomsonreuters.com@reuters.net))