|Subject||Brexit: Logistics players don't see any impact in the short term|
NEW DELHI: Indian logistics players do not see much impact on their business from Brexit, but many are on a ‘wait-and-watch’ mode as there could be changes in shipping routes and some effect on shipping insurance firms in London.
Blue Dart says it does not see any direct impact on the domestic logistics industry.
“I don’t think there will be much of an impact on the sector. Blue Dart has most of its business within India, with 8 per cent coming from the international segment. I don’t think there will be an impact on that as well,” Anil Khanna, Managing Director, Blue Dart, said recently.
The Indian Foundation of Transport and Research Training said the road transport sector was waiting for an impact on crude prices. It also pointed out that the Finance Ministry had been silent on cutting down excise duty which has sharply increased since November 2014, when diesel was deregulated.
“Indian shipping firms will not be impacted, as for India, the European Union is a trading partner and so is the UK. The routing in due time might change. Shipping firms will have to watch the impact of P&I (protection & indemnity) clubs. The front-end offices of most of these firms are in London, under the financial authority of the UK. But, many of these firms are registered in Brussels, or other parts of the UK,” said Anil Devli, CEO, Indian National Shippers Association.
However, S Chandrasekaran, an independent policy analyst in the shipping and foreign trade sector, feels that Brexit will have serious impact on the international shipping route.
Echoing a similar view, Mantrana Maritime Advisory said Brexit could create a negative impact on trade and shipping. “London is a shipping hub where all the insurance, banking firms are headquartered. Brexit could generate local competition between European countries to create a new hub with an intention to undermine the dominance of London as a shipping hub,” said Anand V Sharma, Director, MMA.
Source: - Dailyshippingtimes.com
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