HOW HAS BREXIT AFFECTED REGULATIONS AND COMPLIANCE IN THE SHIPPING INDUSTRY?

For those interested in maritime jobs, Brexit has brought about major changes to shipping regulations and compliance, as the UK transitions from being part of the European Union (EU) to establishing its own regulatory framework.  This transition has introduced new challenges and complexities for the shipping industry, impacting customs procedures, trade agreements and operational practices.  Below is a breakdown of the ways in which Brexit has affected shipping regulations and compliance.

Regulatory Divergence

Following Brexit, the UK is no longer bound by EU maritime regulations, leading to potential regulatory divergence.  Initially, the UK kept much of the EU’s regulatory framework through the European Union (Withdrawal) Act 2018, but it now has the power to amend or develop its own regulations.  This divergence can create complexities for shipping companies operating between the UK and EU, as they must navigate two sets of regulations, potentially increasing compliance costs and administrative burdens.  

Customs and Border Controls

One of the immediate changes post-Brexit has been the introduction of new customs procedures and border controls between the UK and EU member states.  Shipping companies now face additional paperwork, customs declarations and inspections, which can lead to longer processing times and potential delays at ports.  To manage these changes, companies have had to invest in additional resources, such as hiring customs experts and upgrading IT systems to handle the increased administrative workload.  

Trade Agreements and Tariffs

The UK’s departure from the EU customs union and single market means it is no longer part of the EU’s trade agreements.  The UK has been negotiating its own trade deals, which can affect tariffs and market access for shipping companies.  Compliance with new trade agreements requires companies to stay up to date on changes in tariffs, rules of origin and other trade-related regulations that impact shipping operations.

Environmental and Safety Standards

While the UK has retained many of the EU’s environmental and safety standards, it now has the flexibility to change these regulations.  This could lead to differences in standards over time, affecting compliance requirements for shipping companies.  For example, changes in emissions regulations or safety protocols could require companies to adapt their operations to meet new UK-specific standards.

Port and Infrastructure Adjustments

UK ports have had to adapt to new regulatory and compliance requirements, investing in infrastructure and technology to accommodate changes in customs procedures.  This includes implementing systems for efficient customs processing and ensuring compliance with new border control measures.  Ports have also had to manage shifts in cargo volumes resulting from changes in trade routes.  

Workforce Compliance

Changes in immigration policies post-Brexit have affected workforce mobility and skills availability in the shipping industry.  Compliance with new immigration rules requires companies to navigate visa and work permit processes for EU nationals, impacting staff recruitment.  Ensuring compliance with these regulations is essential to maintaining a skilled workforce.

Brexit has required major changes to shipping regulations and compliance, affecting customs procedures, trade agreements, environmental standards and workforce mobility.  While these changes bring challenges, they also offer opportunities for the UK to tailor its regulatory framework to its specific needs.  Shipping companies must remain proactive in adapting to this evolving landscape to ensure compliance and maintain competitiveness in the global market.