Hildegarde Naughton (Galway West, Fine Gael)
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Due to the COVID-19 Pandemic and the subsequent mass grounding of passenger aircraft fleets, there has been a decrease in air cargo capacity and an increase in air cargo costs. Throughout the Pandemic, contact has neem maintained with business representative organisations regarding such capacity and cost. A substantial share of air cargo was previously transported in the belly hold of passenger aircraft, and the loss of that capacity means that there has been an upward pressure on air cargo rates. The resumption of non-essential international travel, from 19 July, should bring back some cargo capacity on scheduled passenger air services.

In terms of shipping capacity for freight, the maritime supply chain has adjusted rapidly to the challenges presented by both the COVID-19 Pandemic and the end of the Brexit transition. Shipping operators have demonstrated their agility in responding quickly to move capacity to where it has been required to serve business needs. In early 2020, there were 26 weekly RoRo freight sailings to continental Europe. There are now over 60 RoRo freight sailings to continental Europe in a typical week (this includes both accompanied and unaccompanied freight). The increase in choice and frequency in the RoRo freight market has had a very significant impact on freight capacity to continental EU ports. Weekly RoRo freight capacity to continental EU ports has doubled in the past 12 months. There is now capacity for approximately 5,000 additional HGV’s and unaccompanied trailers on continental RoRo services per week since the start of 2021.

While the shipping sector has demonstrated its resilience and robustness over the last 18 months I am keenly aware of the growing cost of cargo shipping to Ireland. The recent rise in shipping costs is a global issue. In the first half of 2021, the volume of goods traded globally has increased significantly. Surging demand coupled with moderate supply growth is the cause of the current upward pressure on shipping charter rates. The surging demand is evident on all major containership routes. Disruption to supply lines during initial waves of the pandemic has meant that capacity in the containership industry has not kept pace with demand, driving shipping charter rates upward.

The Irish Maritime Development Office (IMDO) monitors maritime traffic, trade and the global shipping market data and publishes the Irish Maritime Transport Economist (IMTE) each year. I am informed by the IMDO that since the start of the summer  the surge in global goods trade has continued, which has led to continued upward pressure on freight rates. The IMTE notes that the market is expected to return to more ‘normal’ levels as demand for services increases as more economies fully reopen.

I can assure the Deputy that over the course of the last 16 months my officials and I have met, and worked to resolve issues where possible, with stakeholders from the shipping, aviation, haulage and exporter associations in relation to the range of issues they are experiencing due to COVID-19 and Brexit. We continue to monitor these evolving matters.